The Measured Unemployment Rate Does Not Fall as Much as One

question 89

Multiple Choice

The measured unemployment rate does not fall as much as one might expect when output increases because, as the economy expands,

• A) more people enter the labor force.
• B) firms want to hire additional workers.
• C) more people find jobs.
• D) more people leave the labor force.

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Definitions:

Profit

The financial gain obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes needed to sustain the activity.

Revenue

The income that a business receives from its normal business activities, usually from the sale of goods and services to customers.

Expenses

The costs incurred in the process of generating revenue, including but not limited to rent, salaries, and utilities.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income or loss.