High rates of unemployment are undesirable because they:
A) Always lead to a decline in nominal GDP
B) Are associated with higher levels crime and illness
C) Cannot be reduced through government policy
D) Are associated with increases in the price level

Question

Quizplus · Accepted Answer

High rates of unemployment are associated with higher levels of crime and illness. When people are unemployed for a prolonged period, they may develop mental health problems, such as depression and anxiety, and physical health problems, such as heart disease and diabetes. Additionally, unemployment can lead to increased crime rates as people may turn to illegal activities to make ends meet.

High Rates of Unemployment Are Undesirable Because They