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 of a rise in unemployment?

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

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