What Are the Three Types of Unemployment and How Do

question 2

Essay

What are the three types of unemployment and how do they change over the business cycle?

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Definitions:

Small-Company Stocks

Shares of stock issued by companies with a small market capitalization. These stocks are often considered to offer higher growth potential but come with higher risk compared to large-company stocks.

Normal Distribution

A statistical distribution where data points form a symmetric, bell-shaped curve around the mean, indicating that values near the mean are more frequent in occurrence than those far from the mean.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean, indicating how spread out the values in the dataset are.

Variance of Returns

A measure used to quantify the volatility of returns from an investment, indicating the dispersion of returns around the mean.