Answer: d. decrease; increase
Explanation:
If there is an increase in the Fixed Cost of Working, it leads to higher input costs in terms of labor when it comes to producing.
Producers will respond by trying to limit how much they spend on inputs by terminating the employment of some people as well as limiting new employment.
The Labor Force Participation Rate which refers to those active (both employed and unemployed) in the Labor Market will decrease because people might stop being active in the market as a result of the retrenchments and lack of opportunity.
The Producers however, will not demand more from the people still employed so that they may make better profits which will lead to an increase in the hours worked of those still employed.
