The Statement That "The Unemployment Rate Will Increase as the Economy

question 132

Multiple Choice

The statement that "the unemployment rate will increase as the economy moves into a recession" is an example of:

• A) a normative statement.
• B) a microeconomic statement.
• C) marginal analysis.
• D) a generalization.

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Definitions:

Net Present Value

A financial metric used to assess the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.

After-Tax Income

The amount of income that remains for an individual or a business after all federal, state, and withholding taxes have been deducted from taxable income.