During a recession, a number of workers have their hours reduced by their employers. All else the same, the unemployment rate will ________ and the labor force participation rate will ________.
The answers in this case are will remain unchanged and will remain unchanged respectively.
Explanation:
In this case,due to a recession the overall hours of work worked by individual employees or staff are reduced by the employers.
Now,note that it has been mentioned that everything else or every other factor or component in the economy is constant in the economy and thus,unaffected by the recession.
Therefore,it can be reasonably assumed that the unemployment rate will remain the same as there has not been any worker expulsion or layoffs as a result of the recession based on the information provided in the question.
Furthermore,the labor force participation will also presumably remain unchanged as there has been no change in the existing working or employed labor force and/or in the overall population level based on the information presented.