Which of the Following Is Most Likely to Result in Unemployment

question 101

Multiple Choice

Which of the following is most likely to result in unemployment?

• A)Aggregate demand grows more rapidly than aggregate supply.
• B)Aggregate demand and aggregate supply grow at the same rate.
• C)Aggregate supply grows more rapidly than aggregate demand.
• D)Neither aggregate demand nor aggregate supply grows at all.

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Definitions:

Elastic Demand

Elastic demand indicates that the quantity demanded of a good or service significantly changes in response to a change in price.

Necessity

Essential goods or services required for basic living and welfare of individuals.

Luxury

High-quality goods or services that are not essential but are highly desired and associated with wealth or indulgence.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer needs or desires.