The Normal Rate of Unemployment Around Which the Unemployment Rate

question 67

True/False

The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.

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Definitions:

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

Current Ratio

A ratio indicating how well a company can cover its short-term dues.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by comparing net credit sales with the average accounts receivable.