Bill Is a High-School Dropout Who Lost His Job in a Fast

question 268

Multiple Choice

Bill is a high-school dropout who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of

• A) frictional unemployment.
• B) structural unemployment.
• C) cyclical unemployment.
• D) the natural unemployment rate.

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Definitions:

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.

AIG

American International Group, a multinational finance and insurance corporation known for its extensive global operations and services.

Fannie Mae

A government-sponsored enterprise (GSE) in the United States aimed at expanding the secondary mortgage market by securitizing mortgages into mortgage-backed securities.