Question

Which of these is NOT a consequence of unemployment?

a. Unemployed workers get discouraged and feel inadequate.
b. The government experiences a loss of tax revenue.
c. Loss of income leads to reduced consumer spending.
d. The Gross Domestic Product rises significantly.

Answer 1

Unemployment does not lead to a significant rise in GDP.

Step-by-step explanation:

The answer is d. The Gross Domestic Product (GDP) does not rise significantly as a consequence of unemployment. Unemployment leads to a decrease in economic activity, as it represents a lack of productive resources being utilized in the economy. When there is high unemployment, businesses and consumers are likely to spend less, resulting in a decrease in GDP. Therefore, option d is the correct answer as it is the one that does not align with the consequences of unemployment.

Learn more about Consequences of unemployment