Question

Which of the following is correct?

A. The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
B. The amount of unemployment that a country typically experiences is not a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.
C. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.
D. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and a complex economy can achieve zero unemployment.

Answer 1

C. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living, and some degree of unemployment is inevitable in a complex economy.

Step-by-step explanation:

The unemployment rate is a determinant in the country's standard of living because this phenomenon derives in loss of income in the families, that at the same time reflects in a decrease of the spending power and this also can result in an increase in the debt problems which they don't have enough to pay.

On the other hand, in complex economies, unemployment is measured in 5 ways: cyclical, structural, seasonal, frictional and institutional. Some of these types could reach 0 but others will remain so it would be inevitable to have some degree of unemployment.