What Is the Relation Between the Unemployment Rate and the Proportion

question 19

Multiple Choice

What is the relation between the unemployment rate and the proportion of unemployed workers who have been unemployed for 15 weeks or longer?

• A)Both rise in recessions.
• B)Both rise in expansions.
• C)The unemployment rises in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer declines in recessions.
• D)The unemployment falls in recessions but the proportion of unemployed workers who have been unemployed for 15 weeks or longer rises in recessions.

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Definitions:

Labor-Intensive

Describing a process or industry that requires a large amount of labor to produce its goods or services.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, which enhances efficiency in international trade.

Production Possibilities

A curve or frontier representing the maximum combination of goods and services that can be produced efficiently with available resources and technology.

Specialize

To focus on a particular area of expertise or production, often to increase efficiency or performance in that area.