The Persistent,long-Term Unemployment Caused by Long-Lasting Shocks or Permanent Features

question 5

Multiple Choice

The persistent,long-term unemployment caused by long-lasting shocks or permanent features of an economy is called:

• A) frictional unemployment.
• B) structural unemployment.
• C) cyclical unemployment.
• D) seasonal unemployment.

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Definitions:

CAPM

Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.

Risk-to-reward Ratio

A measure used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Constant

A fixed value that does not change in mathematical equations or in the context of specific calculations.