MC Question (1 Viewer)

[Ekman]

Hey everyone, I need help with this question:

Which of the following factors would cause the participation rate to fall and unemployment to increase?

a) An increase in school students seeking employment and reduced levels of business investment.
b) An increase in the number of job seekers and the implementation of micro reform in the Australian economy.
c) A lowering of the compulsory age of retirement and decreased levels of consumer confidence
d) A decrease in the number of full-time careers and reduced levels of government expenditure.

Can someone please explain their answer to this?

 

[happyhunter]

I would go with C, however I'm not an expert

My explanation would be that a lowering of the compulsory age of retirement means there would be less people employed since they are retiring earlier and a decrease in levels of consumer confidence will mean firms have to layoff people due to the decrease in profit which makes unemployment rise.