in general, how do changes in the unemployment rate vary with changes in real gdp? randomly inversely not at all directly b. after several quarters of a severe recession, explain why there might be a decrease in the official unemployment rate. the government wants to instill optimism. businesses substitute capital for labor. discouraged workers stop looking for work. businesses begin to hire again. c. explain why there could be an increase in the official unemployment rate after several quarters of a strong expansion. there is a lag between when people lose their jobs and when they are recorded as officially unemployed. rising wages in an expansion reduce the quantity of labor demanded. businesses begin to hire again, and the new positions are not immediately filled. workers quit to look for better jobs, and people re‑enter the workforce.