Why Does Unemployment Tend to Change When the Level of Output

question 178

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)As output rises, more people are more interested in buying goods and services, and so these people work more to obtain the income needed 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 more vacation time prior to returning to work.

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Definitions:

Freudian

Pertains to Sigmund Freud's psychoanalytic theories, centering on unconscious desires, childhood experiences, and defense mechanisms influencing behavior and personality.

Widely Popular

Something that is liked, admired, or supported by a large number of people.

Neurosis

A broad category used in the past to describe a variety of mental health conditions characterized by emotional distress but not severe enough to impair cognition or perception of reality.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome, often reflecting a heightened state of awareness or fear of potential threats.