Which One of the Following Types of Unemployment Results from the Wage

question 23

Multiple Choice

Which one of the following types of unemployment results from the wage being held above the competitive equilibrium wage?

• A) Structural unemployment
• B) Cyclical unemployment
• C) Frictional unemployment
• D) None of these answers

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Definitions:

Eurodollars

US dollars deposited in banks outside the United States, often used for international transactions and investing.

Dollar-Denominated Deposits

Bank deposits made in U.S. dollars rather than the local currency, often used by investors to avoid foreign exchange rate risk.

Foreign Bank

A bank based in a country other than the country it provides services in, often subject to both domestic and international banking regulations.

Value-Weighted Index

An index in which the weight of each constituent is proportional to its market value, emphasizing larger companies.