Cyclical Unemployment Exists When

question 138

Multiple Choice

Cyclical unemployment exists when

• A) frictional and structural unemployment is zero.
• B) real national income exceeds potential income.
• C) real GDP exceeds potential GDP.
• D) real GDP is less than potential GDP.

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Definitions:

Profit-Sharing Plans

A company-wide program that provides employees with a share in the company's profits, usually in the form of a bonus or retirement benefit.

Unions

Organizations formed by workers to collectively negotiate with employers regarding wages, working conditions, and other employment rights and benefits.

Merit Pay

A compensation strategy that rewards employees based on their performance, often used as an incentive for higher productivity and job satisfaction.

Public Sector

The part of the economy composed of both public services and public enterprises, managed and financed by the government.