In Terms of Unemployment,hysteresis Models Try to Explain Why

question 53

Multiple Choice

In terms of unemployment,hysteresis models try to explain why

• A)cyclical unemployment is always present.
• B)structural unemployment cannot be eradicated.
• C)high unemployment persists even after its initial cause is long past.
• D)frictional unemployment is the cause of hysteresis.

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Definitions:

Premium

The amount by which the price of a financial instrument or security, like an insurance policy, bond, or stock, exceeds its face value or nominal value.

Straight-Line Method

A technique for determining depreciation or amortization by uniformly spreading an asset's cost throughout its lifespan.

Amortizes

The process of gradually writing off the initial cost of an asset over a period, effectively spreading the cost over its useful life.

Accrued Interest

Accrued interest is the interest on a loan or bond that has accumulated since the principal investment or last payment period but has not yet been paid.