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The following table defines some population and employment statistics for two countries. Sweet ...

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The following table defines some population and employment statistics for two countries. Sweet ...

The following table defines some population and employment statistics for two countries.

	Sweet Country	Spicy Country
Population	500 million	510 million
Unemployment rate	4%	5%
Labor participation rate	82%	76%

Refer to the table above. If coal mines across Sweet Country were closed suddenly, and most laid-off workers felt that their skills would not allow them to find new jobs, what is likely to happen?

▸ The unemployment rate would increase.

▸ The labor participation rate would increase.

▸ Both the unemployment rate and the labor participation rate would increase.

▸ Neither the unemployment rate nor the labor participation rate would increase.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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