An Example of Cyclical Unemployment Is A(n)

question 21

Multiple Choice

An example of cyclical unemployment is a(n) :

• A) textile worker permanently laid off due to job lost to imports.
• B) autoworker who is temporarily laid off due to a decline in demand for cars.
• C) engineer permanently laid off due to advances in technology.
• D) computer programmer who leaves one job and accepts a new job.

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Definitions:

SML Approach

Stands for Security Market Line, a graphical representation used in finance to demonstrate the relationship between risk and expected return of assets.

Systematic Risk

The risk inherent to the entire market or a market segment that cannot be mitigated through diversification, often influenced by factors like economic, political, and social changes.

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often estimated using models like the Capital Asset Pricing Model (CAPM).

Dividend Growth

Dividend growth is the rate at which a company's dividend payments to shareholders increase over time.