Reference no: EM132643902

Problem 1: Cyclical unemployment is defined as:

A. The number of workers who have given up looking for work but would still take a job if it paid enough.

B. The natural rate of unemployment.

C. Unemployment related with business fluctuations.

D. Persistent, long-term unemployment caused by long-lasting shocks to the economy.

Problem 2: Which of the following contribute to why wages are considered sticky?

A. People get upset when wages fall, particularly when their employer is causing the wage cut.

B. If wages are cut, workers might respond by working less, thus low moral.

C. Minimum wage requirements make it difficult to lower wages quickly or often.

D. All the above.