If the Wage Demands of Workers Are High Relative to the Prices

question 6

Multiple Choice

If the wage demands of workers are high relative to the prices of products,:

• A) cyclical unemployment will be higher.
• B) cyclical unemployment will be lower.
• C) frictional unemployment will be lower.
• D) structural unemployment will be higher.

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Definitions:

Common Stock

Common Stock represents shares in a company that entitle holders to a share of the profits in the form of dividends and voting rights in certain company decisions.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at original cost and adjusted to reflect the investee's changes in net assets.

Dividends

Payments made by a corporation to its shareholder members, typically from profits or retained earnings, and often in the form of cash or stock.

Income

The financial gain earned or received by an entity within a specified timeframe, typically a result of employment, investments, or business operations.