High unemployment occurs when:
A)there is insufficient demand.
B)inflation rises above inflation expectations.
C)the output gap is positive.
D)the output gap is equal to zero.

Question

Quizplus · Accepted Answer

High unemployment occurs when there is insufficient demand for labor, meaning that employers do not have enough work to justify hiring additional workers. This can be due to a variety of factors, including a slowdown in the economy or a decrease in consumer spending. Inflation and the output gap are not direct causes of high unemployment.

High Unemployment Occurs When