Which of the Following Events Would Increase the Unemployment Rate

question 181

Multiple Choice

Which of the following events would increase the unemployment rate, if nothing else changed?

• A)Unemployed workers leave the labor force
• B)Employed workers leave the labor force
• C)Workers from outside the labor force become employed
• D)Unemployed workers become employed

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Definitions:

Price Ceiling

A price ceiling is a government-imposed limit on the maximum price that can be charged for a product or service, intended to protect consumers from excessive prices.

Consumer Durables

Goods that are not for immediate consumption and can be used repeatedly over a period of time, such as appliances, cars, and furniture.

Autonomous Consumption

Spending by consumers that is not influenced by changes in current income levels, typically covering basic necessities.

Disposable Income

The pool of funds households have for saving and spending pursuits after income taxes are factored out.