The Market-Clearing and Non-Market-Clearing Theories of Unemployment Both Agree That

question 90

Multiple Choice

The market-clearing and non-market-clearing theories of unemployment both agree that

• A)actual unemployment rates will equal the NAIRU in the long run.
• B)wages and prices are perfectly flexible.
• C)unemployment is always voluntary.
• D)actual output adjusts only gradually to potential output.
• E)wages are rigid and adjust only over the long run.

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Definitions:

Improperly Sequenced

Arranged in an incorrect order that does not follow logical or established progression.

Capital Budgeting

The process by which a business evaluates and plans for significant investments in projects, properties, or equipment.

Expected Cash Flows

Forecasts of the amounts, timing, and uncertainty of cash receipts and disbursements that a business anticipates.

Annual Rate of Return Technique

A method to estimate the profitability of potential investments by calculating the projected annual rate of return.