Which of the Following Statements Is NOT True About the Labour

question 89

Multiple Choice

Which of the following statements is NOT true about the labour market during economic fluctuations?

• A) The unemployment rate rises during recessions.
• B) The unemployment rate drops during expansions.
• C) The part of unemployment that is associated with recessions is called cyclical unemployment.
• D) Real wages grow quickly during recessions.
• E) Workers are less likely to receive promotions during recessions.

---

Definitions:

Retained Earnings

Retained earnings represent the cumulative amount of net income earned by a company that is retained by the company rather than distributed to its shareholders as dividends.

Dividends Payable

A liability account listed on a company's balance sheet representing the amount of declared dividends that are owed to shareholders.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.