The Kind of Unemployment That Results When Actual Real GDP

question 78

Multiple Choice

The kind of unemployment that results when actual real GDP is less than potential GDP is known as ________ unemployment.

• A)cyclical
• B)frictional
• C)natural
• D)structural
• E)voluntary

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Definitions:

Price Elasticity

An assessment of the responsiveness of product demand to changes in its pricing.

Demand Coefficient

A parameter in demand analysis that measures the sensitivity of the quantity demanded of a good to changes in its price or other factors.

Quantity Demanded

The complete quantity of a product or service that customers are prepared and able to buy at a given price.

Elasticity Coefficient

A numerical measure of how much the quantity demanded or supplied of a product changes in response to a change in its price, income level, or other factors.