Which of the Following About Unemployment Is True

question 17

Multiple Choice

Which of the following about unemployment is true?

• A) Frictional unemployment implies a lack of available jobs.
• B) During a recession, cyclical unemployment will be low.
• C) When an economy is at full employment, actual unemployment will be less than the natural rate of unemployment.
• D) When actual GDP equals potential GDP, the actual unemployment rate will equal the economy's natural rate of unemployment.

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Definitions:

Operating Activities

Activities that constitute the primary or main activities of a business, including sales, services, and day-to-day operations.

Merchandise Inventory

The total value of a retailer's or wholesaler's goods on hand at the end of an accounting period, available for sale to customers.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.

Indirect Method

A method used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions and changes in working capital.