Which of the following would lead to a lower unemployment rate? choose one or more: a. unemployment benefits are reduced from 26 weeks to 20 weeks b. advances in technology allow computers to accurately process billing records c. a large number of job seekers get discouraged and stop looking for work d. a new company hires 1,000 college graduates e. the economy enters a recession

The correct answer is option A, C, D.

Explanation:

The unemployment rate shows the degree of unemployment in an economy. It is the ratio of the number of unemployed people to the total labor force. A reduction in any or both of these variables will cause the unemployment rate to fall.

Here, a decline in the unemployment benefits will encourage people to find jobs thus reducing unemployment.

Advancement in technology in favor of computers will decrease the demand for labor. This will cause the unemployment rate to increase.

As a large number of people get discouraged and stop looking for jobs. Both the labor force and the number of unemployed people will decline. This will cause the unemployment rate to fall.

As a new firm hires 1,000 college graduates, the number of people unemployed will get reduced, causing the unemployment rate to fall.

When an economy enters into recession the economic activities get reduced. The output and income level will fall as a result. The unemployment rate will increase.

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