The marginal social cost of unemployment
A) increases during recession.
B) declines during recession.
C) increases during a boom.
D) is irrelevant during a boom.
E) a and d only.

Question

Quizplus · Accepted Answer

The marginal social cost of unemployment increases during a recession because more people are unemployed, leading to greater social issues such as poverty and reduced consumer spending, which can exacerbate the economic downturn.

The Marginal Social Cost of Unemployment