The Cyclical Unemployment Rate Is Zero When

question 87

Multiple Choice

The cyclical unemployment rate is zero when

• A) there is a recessionary gap.
• B) there is an expansionary gap.
• C) the output gap equals zero.
• D) frictional unemployment equals structural unemployment.
• E) the sum of frictional,structural,and seasonal unemployment equals zero.

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, but operates in a country different from where the parent company is established.

Franchising

The payment of a fee to a foreign business for rights to locally operate using its name, branding, and methods.

Strategic Alliance

A collaborative effort among two or more corporations to achieve specific targets, while continuing to operate as independent entities.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.