When the Unemployment Rate Increases, the Budget

question 265

Multiple Choice

When the unemployment rate increases, the budget:

• A)is unaffected.
• B)tends to move into deficit.
• C)tends to move into a surplus.
• D)remains neutral.

---

Definitions:

Small-Business Failure

A situation where a small-sized business is unable to continue operation due to financial, managerial, or market-related problems.

Lack of Funds

A situation where there is an insufficient amount of financial resources available to meet the demands or objectives of a project or entity.