An Unemployment Rate of Zero Percent Cannot Be Expected Because

question 116

Multiple Choice

An unemployment rate of zero percent cannot be expected because

• A) there are some people who do not want to work.
• B) there will always be discouraged workers.
• C) some portion of the labor force will always be between jobs.
• D) cyclical unemployment will always exist.

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Definitions:

Laspeyres Price Index

A consumer price index used to measure the change over time in the total cost of purchasing a fixed basket of goods and services.

Per Capita Income

The average income earned per person in a particular area or country, calculated by dividing the area's total income by its total population.

Laspeyres Price Index

A price index that measures the change in the price level of a basket of goods and services, using the quantities of the base period as weights.

Base Year

A specific year against which economic growth or other variables are measured and compared.