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Florida currently has 400 thousand unemployed workers. Over time, you see 50 thousand of
these people become discouraged and give up trying to find work.
What would happen to the unemployment rate, ceteris paribus?
a.It would increase.
b.It would decrease.
c.It would increase initially but decrease when the phantom unemployed receive unemployment
benefits.
d.It would remain unchanged until the unemployed find a job.

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