Which of the Following Is an Example of Cyclical Unemployment

question 45

Multiple Choice

Which of the following is an example of cyclical unemployment?

• A)An autoworker who is temporarily laid off from an automobile company due to a decline in sales.
• B)A geologist who is permanently laid off from an oil company due to a new technological advance.
• C)A worker at a fast-food restaurant who quits work and attends college.
• D)A real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California.

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Definitions:

Constant Rate

A fixed rate, without variation or fluctuation over time.

Dividends

Dividends are payments made by a corporation to its shareholder members, usually derived from the company's profits.

Constant Growth Model

A method to value a stock by assuming that dividends grow at a constant rate indefinitely.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earning potential from dividends for investors.