Which of the Following Is Correct

question 51

Multiple Choice

Which of the following is correct?

• A)Typically more than one-third of the unemployed are new entrants into the job market.
• B)Most spells of unemployment are short.
• C)Most unemployment observed at any time is long term.
• D)All of the above are correct.

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Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, holding the consumer's utility level constant.

Income Effect

The alteration in the income of a person or the economy, and its effect on the amount of a product or service that is requested.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, causing consumers to substitute away from more expensive goods towards cheaper ones.

Income Effect

The effect of income changes on the amount of a good or service that is demanded by a person or within an economy.