If the Economy Is Currently Experiencing a High Unemployment Rate,the

question 85

Multiple Choice

If the economy is currently experiencing a high unemployment rate,the greatest cost is

• A) extra government spending
• B) rewarding those who do not work but collect government benefits
• C) lost output
• D) the cost of job searching
• E) the extra cost of funding job fairs

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Definitions:

Consumer Price Index

An indicator quantifying the mean variation over periods in the financial commitments urban consumers make towards a particular set of consumer goods and services.

Basket of Goods

A fixed set of consumer products and services whose price is monitored over time to calculate inflation through the Consumer Price Index.

Inflation Rate

The rate at which prices for a wide range of goods and services go up, causing a decline in how much can be bought with the same amount of money.

Teddy Bears

Soft, plush toys in the form of bears, often given as a comfort object for children and as gifts of affection for holidays or special occasions.