High rates of unemployment generally mean that
A) the aggregate demand curve is rising.
B) the aggregate demand curve is horizontal.
C) the equilibrium output is above potential output.
D) policies to increase spending are appropriate.
E) the price level is rising.

Question

Quizplus · Accepted Answer

High rates of unemployment indicate a lack of demand for goods and services in the economy, which means that policies to increase spending may be appropriate.

High Rates of Unemployment Generally Mean That