The unemployment rate
A) is the principal measure of material well-being and economic productivity.
B) is the principal measure of how far production is falling short of potential output.
C) is the proportional rate of change of the price level.
D) is the principal determinant of the level of investment, and a principal determinant of future economic growth.

Question

Quizplus · Accepted Answer

The unemployment rate is primarily used to measure how far actual production is from potential output, indicating the economy's efficiency in utilizing its labor resources.

The Unemployment Rate