Unemployment That Is of a Short Duration to Allow Time

question 61

Multiple Choice

Unemployment that is of a short duration to allow time to find a new job is:

• A) structural unemployment.
• B) cyclical unemployment.
• C) frictional unemployment.
• D) durational unemployment.

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Definitions:

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price within a specified time.

American Call Option

A financial agreement granting the purchaser the option, yet not the compulsion, to purchase a stock, bond, commodity, or any asset at a predetermined price within a defined time frame.

Expiration Date

The date on which an option, futures contract, or insurance policy loses its validity or expires.