How does a high unemployment rate affect the economy?


Question: How does a high unemployment rate affect the economy?

(1)a high unemployment rate has no effect.
(2) a high unemployment rate has little effect.
(3)a high unemployment rate has a very positive effect.
(4)a high unemployment rate has a very negative effect.

Answer (4) is absolutely right answer because we know that the high unemployment rate has a very negative effect because unemployment cause negative effect on country GDP.

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