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Why do economists look at unemployment statistics?

ABecause unemployment statistics are a measure of the condition of the economy
BBecause unemployment statistics can determine whether the country is in a period of inflation
CBecause unemployment statistics can predict whether the price of stocks will increase
DBecause unemployment statistics are an indicator of the deflation rate of currency

Verified Answer :

The main reason why economists look at unemployment statistics is "a. Because unemployment statistics are a measure of the condition of the economy" but of course this is not the only measure. 

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The correct answer is A.

The unemployment level is one of the most important macroeconomic indicators, and it is carefully studied by statistics. The unemployment figures are closely related to the aggregate demand levels and to the total output produced in a country during a specific period of time (GDP). Therefore, it is one of the variables that influences economic growth trends and the business cycle.

When unemployment figures grow, it means that there are less people  producing and earning a salary and, therefore, willing to consume. There will be, very likely, a contraction of the GDP and negative economic growth.

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