Answer: The answer is B. increases, and the labor-force participation rate is unaffected.
Explanation: First we will define unemployment and labor force participation rate.
Unemployment is a situation in which persons who are within the working age range, and are willing and able to work are without jobs.
Labor force participation rate can be defined as the section of working population within the age range of 16-64 present in an economy who are either employed or seeking employment. What this means is that, it is the total number of individuals who are currently employed or in search of a job.
Therefore to answer the question above, we can say that unemployment rate has increased as Rick lost his job. But the labor force participation rate has been unaffected because Rick is already in the labor force participation, whether employed or unemployed because the labor force participation rate covers both employed and unemployed individuals.