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:

Economic Reasons

Justifications or motivations based on financial or economic factors that influence decisions or policies.

Organize

The act of arranging or structuring elements in a systematic way, often to achieve specific goals or efficiencies.

Union Representation

The act of a labor union serving as the mediator and advocate for employees in negotiations and discussions with employers.

Legally

Pertaining to laws or regulations; in accordance with legal principles, rights, or standards.