Some Economists Argue That Increases in Labour-Force Participation Rates by Young

question 52

Multiple Choice

Some economists argue that increases in labour-force participation rates by young people and females in the 1970s and 1980s caused

• A)a decrease in frictional unemployment.
• B)a decrease in cyclical unemployment.
• C)a decrease in NAIRU.
• D)an increase in NAIRU.
• E)an increase in cyclical unemployment.

---

Definitions:

Contractual Interest Rate

The agreed-upon interest rate specified in a loan or bond contract, which the borrower must pay to the lender.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the financial markets.

Straight-Line Method

A method of depreciation that allocates an equal amount of the depreciable cost of an asset to each year of its useful life.

Carrying Value

The net amount at which an asset or liability is reported on the balance sheet, calculated as original cost minus any depreciation, amortization, or impairment costs.