Why Might a Favourable Change to the Economy Such as Technological

question 176

Essay

Why might a favourable change to the economy such as technological change or a decrease in the price of imported oil be associated with an increase in frictional unemployment?

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Definitions:

Initial Investment

Initial investment refers to the initial amount of money spent or committed to start a business venture, purchase capital assets, or invest in a project.

Capital Investment

Capital investment refers to funds invested in a business with the expectation of achieving long-term benefits, typically in the form of physical assets like machinery or buildings.

Rate of Return

The profit or deficit achieved from an investment within a certain timeframe, described as a proportion of the investment's initial value.

Net Annual Cash Inflow

The difference between the total cash inflows and outflows of a business over a one-year period.