All of the Following Are Possible Explanations for the Trends

question 51

Multiple Choice

All of the following are possible explanations for the trends in the U.S. unemployment rate in the last half of the twentieth century and early twenty-first century except:

• A)the changing composition of the U.S. workforce.
• B)sectoral shifts.
• C)a generally increasing real value of the minimum wage.
• D)the links between unemployment and productivity.

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Definitions:

Treasury Note

A medium-term government debt security with fixed interest rates and maturities typically ranging from 1 to 10 years.

Default Risk

The possibility that a borrower fails to meet the legal obligations or conditions of a debt.

Liquidity Risk

Refers to the uncertainty of a company's ability to meet its short-term financial commitments due to an inability to convert assets to cash quickly without significant loss.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.