Why Does Unemployment Tend to Change When the Level of Output

question 65

Multiple Choice

Why does unemployment tend to change when the level of output changes?

• A)Persons wish to buy things, and if output falls, people need to work less to earn the income to buy the smaller output.
• B)Labor is an input, and if output falls, employers need fewer workers to make it, so the employment falls.
• C)When output rises, persons are more interested in buying, and will work more to earn the income to buy things.
• D)Persons face the option of buying or working, so that when they do more of one, the other necessarily falls.
• E)When companies replace workers with machines, output rises, and people take time off from work to buy before returning to employment.

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Definitions:

Emotional Labour

The effort required to manage and regulate one's emotions to fulfill the emotional demands of a job.

Emotional Contagion

The phenomenon where emotions can be transferred from one person to another, influencing the emotional states of those around them.

Equity Theory

A theory of motivation that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, affecting their satisfaction and productivity.

High Self-Esteem

The positive perception and valuation of oneself, reflecting confidence in one’s own worth and abilities.