The economic cost of unemployment can be measured by the:
A)amount by which actual real output exceeds potential output
B)amount by which potential output exceeds actual real output
C)excess of real output over nominal output
D)excess of nominal output over real output
E)amount by which the unemployment rate exceeds the inflation rate

Question

Quizplus · Accepted Answer

The economic cost of unemployment is typically measured by the gap between potential output (what the economy could produce if it were operating at full employment) and actual real output (what the economy currently produces). When unemployment is high, actual output is less than potential output, reflecting underutilized labor and capital resources.

The Economic Cost of Unemployment Can Be Measured by The