One major reason that economists are concerned about unemployment is that
A) unemployment always leads to frictional unemployment.
B) unemployment reduces the size of the labor force.
C) unemployment shifts the production possibilities curve outward.
D) the economy is producing less output than if there were full employment.

Question

Quizplus · Accepted Answer

When there is unemployment, the economy is producing less output than it would if all resources, including labor, were fully utilized. This leads to a decrease in the overall standard of living and a reduction in the economy's potential growth rate. Therefore, economists are concerned about unemployment and its effects on the economy.

One Major Reason That Economists Are Concerned About Unemployment Is