SIE practice questionmediumEconomic Indicators - Unemployment Rate
A rising unemployment rate often leads to which economic consequence?
- AReduced consumer spending✓ Correct answer
- BRising inflation
- CIncreasing stock prices
- DHigher GDP growth
Explanation
Why A — Reduced consumer spending
Rising unemployment leads to less disposable income and lower consumer spending, not inflation, higher stock prices, or increased GDP.
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