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Why Are Policy Makers Concerned About Rising Unemployment Rates

question 33

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Why are policy makers concerned about rising unemployment rates?
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Definitions:

Average Product

The output produced per unit of input, calculated by dividing total output by the number of units of a specific input.

Marginal Product

The boost in output stemming from an increment in input by one unit.

Wage

The payment received by workers for their labor, typically expressed as an amount per hour or per year.

Factor Markets

Markets where services of the factors of production (labor, capital, land) are bought and sold.

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