Unemployment Occurs When _____

question 143

Multiple Choice

Unemployment occurs when _____.

• A)people do not work because they are not happy with the work environment
• B)people are unwilling to work at the prevailing market wage rate.
• C)people prefer leisure over work
• D)people do not work because they are physically unable to work
• E)people are willing and are able to work,but cannot find jobs

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Definitions:

High Inflation

A period during which prices for goods and services rise excessively, eroding purchasing power.

Purchasing Power

The ability of an individual or group to buy goods and services, often considered in terms of the amount of goods and services that one unit of currency can buy.

Real Interest Rate

Adjusted interest rate for inflation, reflecting the true cost of borrowing or the real yield on savings.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the raw interest percentage that lenders charge borrowers for the use of money.