The Higher the Rate of Unemployment

question 64

Multiple Choice

The higher the rate of unemployment,

• A) the larger is the GDP gap.
• B) the smaller is the GDP gap.
• C) the higher is the level of actual GDP.
• D) the lower is the level of potential GDP.

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Definitions:

Economic Welfare

A broad measure that evaluates the standard of living and overall well-being of people within an economy.

Qualitative Improvements

Enhancements to the features, performance, or quality of a product or service that go beyond mere quantitative changes.

Economic Welfare

The overall well-being and standard of living of people in an economy, measured through factors such as income, employment, and access to goods and services.

Psychic Income

The non-monetary satisfaction or pleasure derived from work or non-work activities, such as personal fulfillment, pride, or happiness.