The last decade was free of recessions and from the opening bell in… The last decade was free of recessions and from theopening bell in January 2010 to the closing bell inDecember 2019, the Dow Jones Industrial Averageand S&P 500 soared 173.60% and 189.35%,respectively. The Gross Domestic Product increasedfrom $14.992 trillion to $21.433 trillion. Yet duringthat same period, the labor force participation rateactually declined.So, how could it drop when the economy wasbooming and labor force participation ages 65 andover. The oldest baby boomers were 64 in 2010 and73 in 2019. As they aged, a large segment of thepopulation shifted into 65 and older age groups.Because older Americans are less Likely thanyounger ones to be in the labor force, thisdemographic shift reduced the overall labor forceparticipation rate.According to this, which of the following statementsbest explain the labor participation change?Hint: Use the labor Force Participation FormulaA. The labor force participation rate grew in everyage cat
egory because baby boomers are agingwhich led to an overall increase in the labor forceparticipation rate in the last decade.B. Since baby boomers are more likely to be in thelabor force, then using the labor force participationformula, the numerator increases and thedenominator stays constant; thus , the labor forceparticipation rate declines.C. Since baby boomers are aging and are less likelyto participate in the labor force, then using the laborforce participation formula, the denominatordecreases and the numerator rises; thus; the laborforce participation rate decreaes.D. Since baby boomers are aging and are less likelyto participate in the labor force, then using the laborforce participation formula, the denominatorincreases more than the numerator, thus, the laborforce participation rate decreases.E. In the last decade, the working age population has increased in every age category: thus, the labor force participation rate, overall, has increased. Business Economics Macroeconomics ECON MACROECONO