The Relationship Between the Unemployment Rate and the Natural Unemployment

question 39

Multiple Choice

The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate

• A) fluctuates about the natural rate.
• B) is always below the natural rate.
• C) is always above the natural rate.
• D) equals the natural rate.

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Definitions:

Taxes

Mandatory financial charges or levies imposed by a government on individuals, corporations, and other entities to fund government spending and various public expenditures.

Minimum Cash Balance

The least amount of cash a company maintains on hand to meet immediate operational expenses.

Net Cash Flow

The overall flow of currency into and out of an enterprise, critically influencing its liquid assets.

Borrow

Borrow refers to the act of receiving something with the intention to return it, often with interest in the case of financial borrowing.