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Which of the following is the resultant effect of a fall in the profit margin...

Economics
JAMB 2023

Which of the following is the resultant effect of a fall in the profit margin of producers in an economy?

  • A. Unemployment will fall
  • B. Unemployment will remain constant
  • C. Unemployment will increase
  • D. Unemployment will fluctuate
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Correct Answer: Option C
Explanation

In general, Okun's findings demonstrated that when unemployment falls, the production of a country will increase and vice versa.

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