Suppose That Next Year 300 000 Existing Jobs in the Economy

question 40

Multiple Choice

Suppose that next year 300 000 existing jobs in the economy are eliminated through layoffs and plant closures,and 400 000 new jobs are created through expansions and the creation of new firms.The amount of unemployment will rise over that year if

• A)more than 300 000 people drop out of the labour force.
• B)more than 100 000 people drop out of the labour force.
• C)less than 100 000 people drop out of the labour force.
• D)less than 100 000 people join the labour force.
• E)more than 100 000 people join the labour force.

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Definitions:

Note Payable

A written agreement where one party promises to pay another party a certain amount, usually including interest, at a future date.

Interest Payment

The amount paid by a borrower to a lender as a charge for borrowing money, typically expressed as an annual percentage of the principal.

Financing Activity

Transactions and events where cash is raised for investing in the business or repaying funds borrowed by the company, supplied through equity or debt.