Which of the following is the resultant effect of a fall in the profit margin...
ECONOMICS
JAMB 2023
Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?
- A. Unemployment will fall
- B. Unemployment will remain constant
- C. Unemployment will increase
- D. Unemployment will fluctuate
Correct Answer: C. Unemployment will increase
Explanation
In general, Okun's findings demonstrated that when unemployment falls, the production of a country will increase and vice versa.
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