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How Do Economists Measure the Cost of Unemployment

Question 53

Multiple Choice

How do economists measure the cost of unemployment?


A) By the amount by which actual GDP exceeds potential GDP.
B) By the amount by which potential GDP exceeds actual GDP.
C) By the difference between real GDP and nominal GDP.
D) By the difference between GDP and real GNP.
E) By the total costs of unemployment benefits and welfare payments that have to be paid out.

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