If we wanted to describe unemployment in terms of supply and demand, we could say:

Question

Quizplus · Accepted Answer

When there is unemployment, there is a surplus of labor, meaning that there are more people looking for work than there are job vacancies available. This creates a situation where there is more supply of labor than there is demand from employers, leading to high levels of unemployment. Choices B and C are incorrect, as they describe a situation where the demand for labor outstrips supply, which is not the case in unemployment.

If We Wanted to Describe Unemployment in Terms of Supply