Asked by Maxine Wiebenga on May 21, 2024
Verified
If we compared the total of the structurally and frictionally unemployed to the cyclically unemployed,
A) Cyclical would always be higher.
B) Cyclical would usually be higher.
C) Cyclical would rarely be higher.
D) Cyclical would never be higher.
Structurally Unemployed
Individuals who are unemployed due to shifts in the economy that create a mismatch between their skills and the demands of the current job market.
Frictionally Unemployed
Individuals who are temporarily out of work while transitioning between jobs, typically due to voluntary decisions.
Cyclically Unemployed
Individuals who are out of work due to downturns in the business cycle, characterized by reduced demand for goods and services.
- Identify the different forms of unemployment, including frictional, structural, and cyclical.
- Determine fluctuations in the unemployment rate and analyze their consequences.
Verified Answer
JS
Janine SalasMay 24, 2024
Final Answer :
C
Explanation :
Cyclical unemployment fluctuates with the business cycle, rising during recessions and falling during expansions. Structural and frictional unemployment, however, are present even in a healthy economy. It's rare for cyclical unemployment alone to exceed the combined total of structural and frictional unemployment, except in severe economic downturns.
Learning Objectives
- Identify the different forms of unemployment, including frictional, structural, and cyclical.
- Determine fluctuations in the unemployment rate and analyze their consequences.