Which of the following two-part conditions tends to cause unemployment?

Group of answer choices

A) A decrease in consumer and business spending and an increase in the money supply

B) An increase in consumer and business spending and an increase in the money supply

C) An increase in consumer and business spending and an increase in the money supply

D) A decrease in consumer and business spending and a decrease in the money supply

Respuesta :

The two part condition that leads to unemployment is:

  • A decrease in consumer and business spending and a decrease in the money supply.
  • The correct answer is D.

What is Unemployment?

This can be described as a state where there are qualified people for employment yet there are no employment opportunities for the people.

An increase in money supply raises the price level in the economy. This would lower Unemployment in the long run.

A decrease in consumer spending would mean that income of consumers have dropped.

Then consumers would spend less money to purchase goods and services from businesses. This impacts the businesses in a way that they have to drop off some of their workers.

Read more on unemployment here:

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