Unemployment That Is the Result of Recessions Is Called

question 119

Multiple Choice

Unemployment that is the result of recessions is called

• A) downtime unemployment.
• B) cyclical unemployment.
• C) structural unemployment.
• D) frictional unemployment.

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Definitions:

Binding Price Floors

Government-imposed price minimums that are set above the equilibrium price, causing surpluses in the market.

Binding Price Ceilings

Government-imposed price limits that are set below the market equilibrium price, leading to shortages.

Market Efficiency

A condition in which market prices fully reflect all available information and assets are priced accordingly.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, typically set below the equilibrium price to make goods more affordable.