When Output Increases by 1%, the Unemployment Rate ________ in the Short

question 22

Multiple Choice

When output increases by 1%, the unemployment rate ________ in the short run because as output increases, the size of the labor force increases.

• A) tends to rise by 1%
• B) tends to fall by 1%
• C) does not tend to fall by 1%
• D) tends to rise by less than 1%

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Definitions:

Crop Failure

An event where agricultural crops grown do not produce a sufficient yield, often due to weather conditions, pests, disease, or lack of resources.

Agrarian Colony

A settlement primarily engaged in agriculture, established for the purpose of producing crops and livestock.

Native Americans

The indigenous peoples of the United States, including various tribes, who were the original inhabitants of the land prior to European colonization.

Fur Trappers

Individuals or workers engaged in the trapping and trading of animal fur, often in the wilderness, a common occupation during the frontier days of North American exploration and settlement.