When Output Increases by 1%, the Unemployment Rate Does Not

Multiple Choice

When output increases by 1%, the unemployment rate does not tend to fall by 1% in the short run because

A) a firm is likely to meet some of the increase in output by increasing the number of hours worked per job.
B) the number of people who become employed is less than the number of new jobs created.
C) as output increases, the size of the labor force increases.
D) all of the above