The Natural Unemployment Rate Includes

question 119

Multiple Choice

The natural unemployment rate includes

• A)both frictional and structural unemployment.
• B)neither frictional nor structural unemployment.
• C)structural but not frictional unemployment.
• D)frictional but not structural unemployment.

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Definitions:

Dividend Payout Ratio

The dividend payout ratio is the fraction of net income a firm pays to its shareholders in dividends, expressed as a percentage of the company's total net income.

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

External Financing Need

The requirement for funds from sources outside the business, such as loans or equity financing, to support operations or growth.