Which of the following is correct?
A)Some degree of unemployment is inevitable.
B)Other things the same an increase in the number of people who are unemployed is associated with a decrease in real GDP.
C)Cyclical unemployment is inversely related to short-run economic fluctuations in GDP.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All the statements are correct: A) Unemployment is inevitable due to factors like frictional and structural unemployment. B) Higher unemployment typically leads to lower real GDP due to reduced consumer spending and productivity. C) Cyclical unemployment increases during economic downturns and decreases during expansions, showing an inverse relationship with GDP fluctuations.

Which of the Following Is Correct