The Bulk of the Decline in the Natural Rate of Unemployment

question 61

Multiple Choice

The bulk of the decline in the natural rate of unemployment since 1980 is because of

• A)a decline in the inflation rate.
• B)a decline in the share of young workers in the labor force.
• C)increased competition from foreign workers.
• D)the depreciation of the dollar relative to foreign currencies.

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, which contributes towards covering fixed costs and earning profit.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums.

Units

A measure of quantity that indicates the count or quantity of a product or service.

High-Low Method

An approach to estimate fixed and variable costs using the highest and lowest levels of activity.