In March 2007March 2007, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008, the unemployment rate was

Question

3 years ago

7

In March 2007March 2007, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008, the unemployment rate was

6.16.1 percent. Predict what happened to unemployment between March 2007March 2007 and August 2008 August 2008, if the labor force was constan

Business

1 answer:

eimsori [14] · Answer 1 · 2022-01-17T19:29:42+03:00

Answer:

A Recession happened.

Explanation:

When the market sees a recession we see an increase in the unemployment rate due to cyclical unemployment whenever there in a business cycle even though the labor force was constant but in a recession companies face a lot of costs which become higher than their revenue so for example when there is a recession the cost of producing 1 more unit is actually higher than the revenue a firm gets from producing that 1 unit because marginal cost increases at a decreasing rate so they have to lay off people at a firm on that unit of production to maximize revenues.

In March 2007March 2007​, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008​, the unemployment rate was

In March 2007March 2007, the U.S. unemployment rate was 4.44.4 percent. In August 2008 August 2008, the unemployment rate was