When the Unemployment Rate Is Low, the Impact of Additional

question 86

Multiple Choice

When the unemployment rate is low, the impact of additional spending on real output will

• A) be larger than when the unemployment rate is high.
• B) be smaller than when the unemployment rate is high.
• C) be the same as when the unemployment rate is high.
• D) place downward pressure on the general level of prices, leading to deflation.

---

Definitions:

Economic Growth

A rise in the output of goods and services in the economy from one time period to another.

Nutrition

Nutrition is the intake of food, considered in relation to the body's dietary needs.

Educational Attainment

The highest level of education an individual has completed.

Population Growth

The increase in the number of individuals in a population, often measured by the rate at which the number of individuals increases in a specific time period.