High rates of unemployment are undesirable because they
A) always lead to a decline in nominal GDP.
B) are associated with higher levels of crime and illness.
C) cannot be reduced through government policy.
D) are associated with increases in the price level.

Question

Quizplus · Accepted Answer

High rates of unemployment are associated with higher levels of crime and illness. This is because unemployed individuals may become frustrated and turn to criminal activities, and they may not be able to afford necessary healthcare resulting in higher illness rates. The other choices are incorrect as they do not necessarily hold true in all situations.

High Rates of Unemployment Are Undesirable Because They