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

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Definitions:

Temporary Misalignments

Short-term discrepancies between the prices or values of related financial instruments or market sectors that are expected to correct over time.

Arbitrage Strategy

An investment strategy aiming to profit from price differences of the same asset across different markets without market risk.

SEC Regulation

A set of rules and guidelines issued by the U.S. Securities and Exchange Commission to protect investors and maintain fair and orderly functioning of the securities markets.

Transparency

The degree to which a company's actions are observable, understandable, and disclosed to the outside world, especially to investors.