Which of the Following Best Explains the Cause of the Change

question 43

Multiple Choice

Which of the following best explains the cause of the change in the unemployment rate at the end of a recession?

• A) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
• B) Labour hoarding by firms results in an unemployment rate that is not fully responsive to increasing output.
• C) Discouraged workers begin to return to the labour force, causing the unemployment rate to fall.
• D) Frictionally unemployed workers find it easier to gain employment, lowering the natural rate of unemployment.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.

Non-Current Assets

Assets intended for use over an extended time, beyond the next fiscal year, such as property, plant, and equipment.

Entire Class

A group of securities or assets that share the same rights and characteristics.

Acquisition Date

The specific date on which one company gains control over another, marking the point from which the acquiree's financial performance starts being included in the acquirer's financial statements.