Asked by Inder Singh on Jun 09, 2024

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The demand for workers often rises in one region of the U.S. and falls in another. This illustrates

A) frictional unemployment created by sectoral shifts.
B) frictional unemployment created by efficiency wages.
C) structural unemployment created by efficiency wages.
D) structural unemployment created by sectoral shifts.

Sectoral Shifts

Sectoral shifts refer to changes in the labor demand across various industries or sectors of the economy, often due to technological advances, consumer preferences, or other factors.

Frictional Unemployment

A form of temporary unemployment that occurs when workers are between jobs or are searching for new jobs that better match their skills.

Efficiency Wages

Wages set by employers above the market equilibrium to increase productivity and reduce employee turnover.

  • Understand the concept of sectoral shifts and their impact on the labor market.
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Nakeisha oltonJun 10, 2024
Final Answer :
A
Explanation :
This scenario illustrates frictional unemployment created by sectoral shifts, as workers may need to move or retrain for new jobs in different regions or sectors, causing temporary unemployment.