The Type of Unemployment That Arises During Recessions Is Known

question 172

Multiple Choice

The type of unemployment that arises during recessions is known as

• A) the natural rate of unemployment.
• B) cyclical unemployment.
• C) structural unemployment.
• D) frictional unemployment.

---

Definitions:

Potential Output Level

The highest level of real gross domestic product (GDP) that can be sustained over the long term without increasing the rate of inflation.

Identity

The distinct characteristics, personality, or qualities that make an individual or group unique.

Quantity Theory of Money

A theory that relates the money supply to the price level and the rate of economic growth.

Money Supply

The sum of all financial assets, encompassing cash and deposits in banks, present within an economy at a given moment.