High Unemployment Is Undesirable Because It

question 23

Multiple Choice

High unemployment is undesirable because it

• A)results in a loss of output.
• B)always increases inflation.
• C)always increases interest rates.
• D)reduces idle resources.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership value.

Liabilities

Financial obligations or debts a company owes to external parties or entities.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus shareholders' equity.

FASB

Stands for the Financial Accounting Standards Board, which is responsible for establishing and improving financial accounting and reporting standards in the United States.