1. Define the Labor Participation Rate (LFP). Then, for each of the following explain what is likely to happen to the LFP if: a. The Federal Minimum Wage is abolished b. The minimum working age is raised from 16 to 18 c. The economy is in the midst of a prolonged recession

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Chapter21: Unemployment
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1. Define the Labor Participation Rate (LFP). Then, for each of the following,
explain what is likely to happen to the LFP if:
a. The Federal Minimum Wage is abolished
b. The minimum working age is raised from 16 to 18
c. The economy is in the midst of a prolonged recession
d. The Federal Government reduces the duration of unemployment benefits
from 26 weeks to 13 weeks
Transcribed Image Text:1. Define the Labor Participation Rate (LFP). Then, for each of the following, explain what is likely to happen to the LFP if: a. The Federal Minimum Wage is abolished b. The minimum working age is raised from 16 to 18 c. The economy is in the midst of a prolonged recession d. The Federal Government reduces the duration of unemployment benefits from 26 weeks to 13 weeks
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