Final answer:
The labor force participation rate increases when employed individuals are reclassified as unemployed, and decreases when they are reclassified as discouraged workers.
Step-by-step explanation:
When employed individuals are reclassified as unemployed, the labor force participation rate increases. This is because they are no longer counted as part of the employed group, but are now included in the unemployed group. On the other hand, when employed individuals are reclassified as discouraged workers, the labor force participation rate decreases. This is because discouraged workers are no longer considered part of the labor force and are excluded from both the employed and unemployed categories.