Which of the Following Conditions Might Cause the Unemployment Rate

question 100

Multiple Choice

Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?

• A) Demand for products starts to decrease,so firms keep their factories open for additional hours of production to make up the difference.
• B) Demand for products is so high that firms keep their factories open for additional hours of production and pay their workers overtime.
• C) Demand for products is so high that firms raise their prices to take advantage of extra profits.
• D) The economy enters a recession,so firms start to produce more to help boost the economy.
• E) The government decreases unemployment benefits.

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Definitions:

Short-Term Debt

Financial obligations and loans that are due to be paid back within a year from the balance sheet date.

Measure

An evaluation or estimation of the nature, quality, or ability of someone or something.

Trend Analysis

A method used to analyze and track the movements or directions of data points, such as prices or sales over time, to forecast future trends.

Horizontal Analysis

A financial analysis method that compares historical financial data over a series of periods to identify trends and changes.