Use the Following to Answer Questions: Table: Unemployment Statistics for Country

question 66

Multiple Choice

Use the following to answer questions: Table: Unemployment Statistics for Country X $$\begin{array} { l l l } \hline \text { Type of Unemployment } & \mathbf { 1 9 9 5 } & \mathbf { 2 0 0 5 } \\\hline \text { Frictional unemployment } & 1.5 \% & 1 \% \\\text { Cyclical unemployment } & 3.4 \% & 4.7 \% \\\text { Structural unemployment } & 2.5 \% & 1.9 \% \\\hline\end{array}$$
-(Table: Unemployment Statistics for Country X) Using the data in the table, Country X is likely to be in a recession in:

• A)1995.
• B)2005.
• C)both 1995 and 2005.
• D) neither 1995 nor 2005.

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Definitions:

Mean Reversion

Suggests that performance eventually moves back toward the mean or average.

Demand And Supply Shocks

Unexpected events that cause sudden and significant changes in the demand or supply of goods and services in the economy.

Marginal Revenue

The increase in income resulting from the sale of one extra unit of a product or service.

Average Revenue

The amount of revenue a company receives per unit of sales, calculated by dividing total revenue by the number of units sold.