Full Employment Exists When

question 220

Multiple Choice

Full employment exists when

• A) there is no cyclical unemployment.
• B) there is only frictional and structural unemployment.
• C) the economy is at the natural unemployment rate.
• D) All of the above answers are correct.

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Definitions:

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.