If Unemployment and Inflation Move Inversely, Then We Can Infer

question 38

Multiple Choice

If unemployment and inflation move inversely, then we can infer that business fluctuations are

• A)from the demand side.
• B)from the supply side.
• C)from both the demand and supply side.
• D)purely random events.

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Definitions:

After-Tax Cost

The expense of an action or investment after accounting for the effects of taxes.

Leverage

The use of borrowed funds to increase the potential return of an investment or project.

ROE

Return on Equity evaluates a company's profit generation capacity by showing the amount of profit made from the investment of its shareholders.

EPS

Earnings Per Share, a key financial metric calculating the portion of a company's profit allocated to each outstanding share of common stock.