Immediate Exit from Working Population

Steps:

• Define labor force as working-age individuals (typically 16-64 or 65) who are employed or seeking work.
• Identify immediate causes: Changes affecting current participants, not future population growth.
• Analyze retirement: Lowering age removes current workers from labor force instantly.
• Compare options: Only retirement shift acts on existing workforce without delay.

Why C is correct:

• Labor force definition excludes those retired; reducing retirement age immediately reclassifies eligible workers as non-participants, shrinking the force per standard economic metrics.

Why the others are wrong:

• A: Smaller families lower future births, delaying labor force impact by 16+ years.
• B: Reduced birth rate shrinks future working-age population, with no immediate effect.
• D: Higher net immigration adds current working-age adults, expanding the labor force.

Final answer: C