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:

Epilimnion

The upper layer of water in a stratified lake, which is warm and well-oxygenated during the summer.

Hypolimnion

The cooler, deeper layer of water in a stratified lake, lying below the warmer, upper epilimnion layer and not mixing with it.

Large Herbivores

Big plant-eating animals that feed predominantly or exclusively on vegetation, such as elephants, giraffes, and bison.

Biome

A large community of plants and animals that occupies a distinct region defined by its climate and ecosystems.