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Collegetown's unemployment rate is 5 % . After graduation, students who previously did not work actively seek jobs but only 80% find work right away. The rest continue to actively look for jobs. How does Collegetown's labor force participation rate and unemployment rate change? a. The labor force participation rate increases and the unemployment rate decreases. b. The labor force participation rate decreases and the unemployment rate decreases. c. The labor force participation rate increases and the unemployment rate increases. d. The labor force participation rate decreases and the unemployment rate increases.
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