A Firm Is Said to Be Countercyclical If Its Returns

question 97

Multiple Choice

A firm is said to be countercyclical if its returns:

• A) continue to decrease, year after year.
• B) continue to increase, year after year.
• C) outperform when most stocks do poorly.
• D) are negative in real terms.

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Definitions:

Hourly Pay

The rate of compensation an individual receives for one hour of work.

U.S. Dollar Terms

Financial transactions or valuations denoted in the currency of the United States, the US dollar (USD).

Long-Run Real Wages

The earned wage adjusted for inflation over a period in which all inputs, including labor, can be fully adjusted in the market.

Demand for Labor

The total amount of workers that employers are willing and able to hire at a given wage rate in a specific labor market.