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Suppose that a deep and prolonged recession induces some job seekers to discontinue their job search efforts due to the belief that no jobs are available for them. These individuals are known as _____ workers, and an increase in their numbers, all else constant, will cause the unemployment rates computed above to _____.

Answer :

Answer:

The correct answer is: discouraged workers; decline.

Explanation:

Discouraged workers can be defined as those individuals who are not employed currently but are not actively looking for jobs either. These workers working looking for work and have quit looking.  

These workers are not included in the labor force and unemployed population. So when the number of discouraged workers increases, the unemployment rate will decline as the number of unemployed workers as well labor force will decline.

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