Questions: The unemployment rate rises any time there is an increase in the number of unemployed persons. True False

The answer is False.

Explanation: The unemployment rate is calculated as the number of unemployed persons divided by the labor force (which includes both the employed and the unemployed). Therefore, the unemployment rate can rise, fall, or remain unchanged depending on changes in both the number of unemployed persons and the size of the labor force.

For example:

1. If the number of unemployed persons increases but the labor force also increases proportionally, the unemployment rate might not change.
2. If the number of unemployed persons increases while the labor force remains constant, the unemployment rate will rise.
3. If the number of unemployed persons increases but the labor force decreases, the unemployment rate could rise even more sharply.

Thus, an increase in the number of unemployed persons does not automatically mean that the unemployment rate will rise; it depends on the changes in the labor force as well.