Question

What is one possible effect of high unemployment in a mixed market economy?

The government will intervene to appoint new jobs to workers.
A lack of income will weaken the buying power for many people.
New government-run farms and factories will open to provide work.
The wealth gap between the upper and lower classes will decrease.

Answer 1

A lack of income will weaken the buying power for many people.

High unemployment reduces households' income, lowering consumer spending and aggregate demand.