Which of the Following Statements Is Correct

question 160

Multiple Choice

Which of the following statements is correct?

• A) When supply increases, the quantity increases and the price falls.
• B) When demand decreases, both the price and the quantity increase.
• C) When demand increases, both the price and the quantity decrease.
• D) When supply decreases, both the price and the quantity decrease.

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Definitions:

Frictional Unemployment Rate

Frictional Unemployment Rate refers to the percentage of the labor force that is voluntarily moving between jobs, careers, or locations.

Structural Unemployment Rate

The long-term and chronic unemployment that exists even when the economy is at its productive best, often due to mismatches between skills and job requirements.

Overall Unemployment Rate

A percentage that represents the portion of the labor force that is not currently employed but is actively seeking employment.

Unemployment Rate

The fraction of job-seeking individuals within the labor force who are currently unemployed.