The primary macroeconomic cost of unemployment is

Question

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Unemployment leads to a reduction in output as fewer goods and services are produced. This results in a loss of potential income and reduced economic growth. Higher prices (A) could be a secondary effect of decreased output due to supply shortages, but it is not the primary cost. Lost leisure time (B) and mental illness (E) may be personal costs for individuals who are unemployed, but they are not macroeconomic costs. Domestic violence (D) may be a societal cost of unemployment, but it is not the primary macroeconomic cost.

The Primary Macroeconomic Cost of Unemployment Is