If the Official Unemployment Rate Increases in March from Its

question 106

Multiple Choice

If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry, we can conclude that ____ unemployment is responsible for the increase. (Fill in the blank)

• A) seasonal
• B) cyclical
• C) structural
• D) frictional
• E) any one of the causes of

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Definitions:

Sales Potential

The estimated maximum total sales revenue of a product or service in a specific market over a set period.

EBIAT

Earnings Before Interest After Taxes, a measure of a company's profitability that excludes interest expenses but includes taxes.

Amortization

The process of spreading out a loan into a series of fixed payments over time, accounting for both principal and interest.

Capital Expenditures

Funds spent by a company to acquire or upgrade physical assets such as equipment or property.