Questions: Multiple Choice Question The percentage of workers in the labor force who are unemployed, a good indicator of the overall health of the economy, is called: a monetary policy. the unemployment rate the interest rate. the inflation rate.

Multiple Choice Question The percentage of workers in the labor force who are unemployed, a good indicator of the overall health of the economy, is called: a monetary policy. the unemployment rate the interest rate. the inflation rate.
Transcript text: Multiple Choice Question The percentage of workers in the labor force who are unemployed, a good indicator of the overall health of the economy, is called: a monetary policy. the unemployment rate the interest rate. the inflation rate.
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Solution

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Answer

The answer is the unemployment rate.

Explanation
Option 1: a monetary policy

Monetary policy refers to the actions undertaken by a nation's central bank to control money supply and achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity. It is not a measure of the percentage of unemployed workers.

Option 2: the unemployment rate

The unemployment rate is the percentage of workers in the labor force who are unemployed and actively seeking employment. It is a key indicator of the overall health of the economy, reflecting the ability of the economy to create jobs.

Option 3: the interest rate

The interest rate is the amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal. It is a tool used in monetary policy but does not directly measure unemployment.

Option 4: the inflation rate

The inflation rate measures the rate at which the general level of prices for goods and services is rising, and subsequently, how purchasing power is falling. It is not a measure of unemployment.

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