The Increase in Unemployment That Occurs During Recessions and Depressions

question 253

Multiple Choice

The increase in unemployment that occurs during recessions and depressions is called

• A) frictional unemployment.
• B) structural unemployment.
• C) cyclical unemployment.
• D) normal unemployment.

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Definitions:

Capital Account

An account on the balance sheet that reflects the net worth and equity of an individual or business.

Withdrawals

Amounts taken out from a business by its owners for personal use, often affecting the owner's capital account.

Ending Inventory

The worth of products on hand for sale at the conclusion of an accounting cycle, determined by adding the starting inventory to acquisitions and then subtracting the cost of goods sold.

Merchandise Inventory

Goods or products that a company holds for the purpose of sale to customers in the ordinary course of business.