Structural Unemployment Results When

question 311

Multiple Choice

Structural unemployment results when

• A) a reduction in consumer income reduces demand for products.
• B) individuals enter the labor market in June following graduation.
• C) workers face layoffs following a decrease in economic activity.
• D) the introduction of a product substitute leads to a large decline in the market demand for a product so that workers specializing in the production of that product find themselves out of work.

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Definitions:

Rule of 72

A mathematical rule to estimate the number of years required to double an investment at a given annual fixed interest rate.

$10,000

A numerical figure representing a specific amount of money, notable in various financial contexts.

Cash Flows

signify the net amount of cash being transferred into and out of a business, crucial for assessing liquidity, flexibility, and overall financial health.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them to their present value, used to assess the profitability of investments.