Rick loses his job and immediately begins looking for another. Ceteris paribus, the unemployment rate:.A. increases, and the labor-force participation rate decreases. B. increases, and the labor-force participation rate is unaffected. C. is unaffected, and the labor-force participation rate increases. D. decreases, and the labor-force participation rate is unaffected.

B. increases, and the labor-force participation rate is unaffected

Explanation:

Rick loses his job and immediately begins looking for another. Definitely, the unemployment rate has increase. He has been sent back to the labor market. Rick is definitely unemployed because he lost his job and this means an  increase in the employment rate. Note that unemployment rate is the percentage of the labor force that is unemployed and are actively looking for a job.

The labor force participation rate is the percentage number of people who are of working age both the employed and the once actively looking for a job. The labor force participation rate is definitely unaffected as Rick lost his job.  

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