Explain Why It Is Possible for Job Vacancies and Unemployment

question 27

Essay

Explain why it is possible for job vacancies and unemployment to exist at the same time.

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Definitions:

Financial Assets

Stocks and bonds. More generally a document giving its owner a claim to certain future cash flows. Stocks base that claim on ownership (equity), while bonds base it on debt. Also called a security.

Future Cash Flows

Projected financial gains or losses for a specific period in the future.

Financial Advisors

Professionals who help individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes, and retirement.

Collateral

Assets that a borrower offers to a lender as security for a loan, which can be seized if the loan is not repaid according to the agreed upon terms.