A Decrease in Aggregate Demand and the Subsequent Cutbacks in Production

question 174

Multiple Choice

A decrease in aggregate demand and the subsequent cutbacks in production lead to

• A) frictional unemployment.
• B) cyclical unemployment.
• C) cost-push unemployment.
• D) structural unemployment.
• E) transitory unemployment.

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Definitions:

Return On Assets Ratio

A financial metric used to evaluate a company's efficiency in generating profits from its assets, calculated by dividing net income by total assets.

Debt And Equity Financing

Ways in which a company raises funds through borrowing (debt) or selling ownership shares (equity).

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholder's equity.

ROA

Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns in relation to its overall resources.