What Is the Likely Consequence of an Unemployment Rate Falling

question 5

Multiple Choice

What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?

• A)The threat of recession.
• B)Increased inflationary pressures.
• C)An increase in discouraged workers.
• D)None of the choices are correct.

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Definitions:

Independent of One Another

A concept where events or variables do not affect or influence each other.

Annual Profit

The financial gain, often calculated before taxes, that a business makes within one fiscal year.

Homeowner's Policy

An insurance policy that provides coverage for a homeowner against losses or damages to their home and belongings inside it.

Catastrophe

An event causing great and often sudden damage or suffering; a disaster.