2. TRUE/FALSE/MAYBE and EXPLAIN: (2 MARKS). "It is impossible for the total number of people employed and the unemployment rate both to fall at the same time.

Answer Unemployment rate defined as percentage of person unemployed among the persons in the labor force (unemployed + employed) Unemployment rate = number of unemployed persons/ labour force Similarly, employment rate = number of employed person/ labour force If there is a situation where number of employed people i.e work force is continue to decrease because of retirement so number of employed people decrease and at the same time number of people inter into the labour force but seeking for the job or jobless individual look for job is increasing. Therefore, the negative impact of the situation on employment is not being fully compensated by the rise in participation rate and thus, drop in unemployment rate too. So, there may be that the total number of people employed and the unemployment rate both to fall at the same time.