After a Small Hurricane in Florida, Unemployment Is Low as There

question 289

Multiple Choice

After a small hurricane in Florida, unemployment is low as there is a great deal of construction work and businesses run at full capacity. This suggests that

• A)the economy is operating above the full-employment level and will eventually adjust back to long-run aggregate supply.
• B)living standards are falling as employment and economic activity are too high.
• C)the economy is operating below its long-run level and living standards are less than they would have been without the hurricane.
• D)the hurricane is beneficial since it is increasing employment and replacing less efficient capital with newer and more efficient capital.

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Definitions:

Common-Size Financial Statement

Financial statements that present all items in percentage terms, with each line item displayed as a percentage of a significant figure such as total sales or total assets, for comparison purposes.

Source Of Cash

A Source Of Cash refers to activities or transactions that bring money into a company, increasing its cash flow, such as operating activities, financing activities, and investing activities.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors, representing its short-term liabilities.

Gross Profit Ratio

A financial metric that shows the proportion of gross profit to sales, indicating the efficiency of production and pricing.