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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### Understanding the Labor Participation Rate (LFP)

1. **Definition:**
   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:### Understanding the Labor Participation Rate (LFP) 1. **Definition:** 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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