If the Cyclical Unemployment Rate Is Negative,then the

question 6

Multiple Choice

If the cyclical unemployment rate is negative,then the

• A)economy is operating beyond full employment.
• B)economy is operating at less than full employment.
• C)frictional unemployment rate is negative.
• D)frictional unemployment rate is greater than the structural unemployment rate.
• E)real-wage unemployment rate is negative.

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Definitions:

Wage Subsidies

Financial incentives provided by governments to employers to encourage the hiring of certain groups of people, reducing unemployment.

Tariffs

Taxes imposed by a government on imported goods to protect domestic industries or to raise revenue.

Direct Welfare

Governmental assistance provided directly to individuals in the form of cash payments or services, aimed at improving the living conditions of the economically disadvantaged.

National Defense

The governmental actions, policies, and military measures taken to protect a country from external threats and ensure national security.