Which Labor Market Statistic Tends Rise During Recessions and Fall

question 52

Multiple Choice

Which labor market statistic tends rise during recessions and fall during expansions?

• A) the employment-to-population ratio
• B) the unemployment rate
• C) the labor-force participation rate
• D) aggregate hours

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Definitions:

Margin of Safety

This is a financial metric that measures the difference between actual sales and the break-even point, indicating how much sales can decline before a business incurs a loss.

Percentage of Sales

A financial ratio that compares a particular figure or amount to the total sales of a company.

Dollars

The official currency of the United States, also used as a standard monetary unit in many other countries and economic contexts.

Break-Even

The point at which total costs equal total revenue, indicating that a business is neither making a profit nor a loss.