Some Believe That Technological Progress Leads to Higher Unemployment in the Medium

question 60

Multiple Choice

Some believe that technological progress leads to higher unemployment in the medium run.This claim that technological progress results in an increase in unemployment in the medium is supported by

• A)economic theory, but contradicted by the evidence.
• B)theory and evidence.
• C)the evidence, but contradicted by theory.
• D)neither theory nor evidence.
• E) none of the above

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Definitions:

Firm Commitment Underwriting

A commitment by an underwriter to buy all the unsold shares of a public offering at an agreed-upon price, thus guaranteeing the issuer that the offering will raise a certain minimum amount of capital.

Spread

The difference between the buying and selling price of an asset or the difference between the bid and ask prices in trading.

IPO Underpriced

The phenomenon of an initial public offering (IPO) being priced below its market value, often leading to a significant first-day surge in stock price.

Issuer

An entity that offers securities for sale to finance its operations, such as a corporation or government.