Why are economists concerned with unemployment as measured by the unemployment rate?
A)when the unemployment rate is high, wages tend to rise
B)if the nation is to reach its full economic potential then all individuals must have the opportunity to become productive employed members of society
C)output that could have been produced in the previous year by those who were unemployed is forever lost
D)All of the above are correct.
E)Both b and c are correct.

Question

Quizplus · Accepted Answer

Economists are concerned with unemployment as measured by the unemployment rate because if the nation is to reach its full economic potential, then all individuals must have the opportunity to become productive employed members of society, and output that could have been produced in the previous year by those who were unemployed is forever lost. While wages may tend to rise when the unemployment rate is high, this is not the primary concern for economists, as it is more important to ensure that everyone has the opportunity to contribute to the economy. Therefore, choice E, which states that both options B and C are correct, is the best answer.

Why Are Economists Concerned with Unemployment as Measured by the Unemployment