If Cyclical Unemployment Is Negative, Then

question 304

Multiple Choice

If cyclical unemployment is negative, then

• A) the actual unemployment rate is below the natural rate of unemployment.
• B) the natural rate of unemployment is getting smaller.
• C) there have been some errors in classifying the type of unemployment experienced by some people.
• D) structural unemployment must be increasing.

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Definitions:

Sensitivity Analysis

A technique used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Break-even Point

The financial point at which total costs equal total revenue, meaning that the business is neither making a profit nor a loss.

Cost-volume-profit Analysis

An accounting technique used to determine how changes in costs and volume affect a company's operating income and net income.

Sales Mix

The relative distribution of sales among the various products available for sale.