. Question 8 0 out of 5 points Which of the following explains why a very low unemployment rate is associated with higher inflation? Selected Since labor costs average about 1/7 of all production costs in the U. 5., very lower unemployment Answer: means higher wages and labor costs, and ultimately, higher prices. Answers: Since labor costs average about 1/7 of all production costs in the U. S., very lower unemployment means higher wages and labor costs, and ultimately, higher prices. very low unemployment means that there are not many skilled job seekers among the unemployed, Very low unemployment means that there is surplus of workers who have low skills. When the unemployment rate is very low, highly skilled workers keep looking for jobs with the highest wages. Question 9 5 out of 5 points Why do stock prices tend to change with news of higher inflation in the future