Describe the Difference Between the Employment Rate and the Labor

question 20

Essay

Describe the difference between the employment rate and the labor force participation rate (LFPR).Under what circumstance would the two be equal to one another?

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Definitions:

Liquidity

A measure of a company's ability to pay off its short-term liabilities with its available cash and quick assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer.

Operating Cycle

The average period of time it takes for a business to convert its inventory into cash through sales.

Twelve Months

A term commonly used in finance and business to refer to a full fiscal or calendar year.