When an Economy Experiences Hidden Unemployment

question 98

Multiple Choice

When an economy experiences hidden unemployment,

• A)its labour force increases,but the level of employment remains unchanged.
• B)the true rate of unemployment may exceed the official rate.
• C)the true rate of unemployment may be less than the official rate.
• D)the labour force may shrink and the unemployment rate may increase.

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Definitions:

Poles

The two extremities of the Earth's axis, known as the North Pole and South Pole, characterized by extreme weather conditions.

Thermohaline Conveyor

A global circulation pattern in which ocean currents transport warm and cold water masses around the globe, driven by differences in temperature and salinity.

North Pacific

A region of the Pacific Ocean extending from the Equator to the Arctic Ocean, bounded by Asia and the Americas.

Drought

An extended period of below-average precipitation.