Which Type of Unemployment Is Likely to Be Higher When

question 87

Multiple Choice

Which type of unemployment is likely to be higher when real GDP growth is lower?

• A) structural unemployment
• B) frictional unemployment
• C) cyclical unemployment
• D) natural unemployment

---

Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specified time frame.

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Stock Beta

A measure of a stock's volatility in relation to the overall market; reflects the risk associated with a specific stock.

Time to Maturity

The duration left until the final payment date of a financial instrument, critical for assessing its risk and return.