The outcome of the state of nature affects the payoff to the agent under a

A recession is a slowdown in the rate of economic growth that

A) causes total income to fall even though total output has not declined. B) is unintended and therefore disappoints people's expectations. C) lowers the nominal level of gross domestic product. D) persists longer than one year. E) results in fewer people being employed.

Assuming there are 190 million people employed in the United States and 10 million people unemployed, the unemployment rate would therefore equal

A. 10 percent. B. 1.9 percent. C. 5 percent. D. an undetermined amount given the lack of information.