'Frictional Unemployment' Would Increase When

question 4

Multiple Choice

'Frictional unemployment' would increase when:

• A)there is a fall in aggregate demand.
• B)workers are replaced by machines and the workers do not have the skills necessary to perform new jobs.
• C)discouraged workers leave the labour force.
• D)the number of individuals who quit their job to find another job increases.

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Definitions:

Investing Activity

Transactions involving the purchase or sale of long-term assets and investments, not relating directly to the entity’s primary business activities.

Cash Equivalent

Short-term, highly liquid investments that can be readily converted to cash with insignificant risk of changes in value.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Financing Activities

Transactions and business events that affect long-term liabilities and equity of the company, such as issuing bonds or repaying bank loans.