Which of the following is false in regard to the unemployment rate?
A) According to Bureau of Labor Statistics, the country loses goods and services that could have been produced.
B) A nation benefits from unemployment due to a lower level of wages required to be paid by employers.
C) According to the Bureau of Labor Statistics, families lose wages due to unemployment.
D) The unemployment rate is the percentage of a nation's labor force not working at any one time.
E) The purchasing power of unemployed workers is lost.

Question

Quizplus · Accepted Answer

It is false that a nation benefits from unemployment due to a lower level of wages required to be paid by employers. Unemployment leads to a decrease in overall economic activity and can result in decreased consumer demand, lower productivity, and lower economic growth. Additionally, while employers may pay lower wages to unemployed workers, they may also have to offer increased benefits to attract workers when the labor market tightens.

Which of the Following Is False in Regard to the Unemployment