Which of the Following Caused the The Unemployment Rate to Rise

question 16

Multiple Choice

Which of the following caused the the unemployment rate to rise to over 10 percent in 1983?

• A) The increase in the number of illegal immigrants from Central and Latin America.
• B) The Fed's contractionary response to inflation caused by the oil shocks.
• C) Increase in tax rates implemented by Ronald Reagan in 1981.
• D) The change in U.S. labor laws requiring firms to pay unemployment insurance to workers.

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Definitions:

Invested Assets

Assets or capital that have been allocated or deployed with the expectation of earning a return or profit.

Operating Expenses

Expenses incurred in the regular operation of a business, such as rent, salaries, utilities, and office supplies, but excluding cost of goods sold.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, essentially measuring how much out of every dollar of sales a company actually keeps in earnings.

Invested Assets

Resources or capital put into financial instruments, land, buildings, or other assets with the expectation of generating income or profit.