Unemployment can result in substantial economic costs since
A) unemployed people lose their self-esteem.
B) society's potential output becomes more expensive to distribute.
C) employed people have to work harder to compensate for those who are not working.
D) actual output is below potential output.
E) idle machinery must have its life span lengthened.

Question

Quizplus · Accepted Answer

Unemployment leads to a situation in which actual output falls below the potential output, which results in a loss of economic output and therefore incurs substantial economic costs.

Unemployment Can Result in Substantial Economic Costs Since