Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

Which measure gives the clearest indication of the economic cost caused by a rise in unemployment?

  • Athe additional social security benefits paid plus the loss of tax revenue from newly unemployed workers
  • Bthe loss of potential exports
  • Cthe money value of the additional social security benefits paid
  • Dthe output the unemployed workers could have produced

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