Which of the following is NOT a cost of unemployment?
A) unemployed people who feel a loss of self-respect
B) wasted resources
C) unemployed people who experience negative psychological effects
D) higher inflation rates

Question

Which of the following is NOT a cost of unemployment?  
A) unemployed people who feel a loss of self-respect 
B) wasted resources 
C) unemployed people who experience negative psychological effects 
D) higher inflation rates

Quizplus · Accepted Answer

Higher inflation rates are not a direct cost of unemployment. However, unemployment can affect inflation indirectly through changes in consumer spending and investment, which can lead to changes in aggregate demand and prices.

Which of the Following Is NOT a Cost of Unemployment