3. Types of unemployment The three people described in the following table are c

Question

3. Types of unemployment The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Structural Frictional Cyclical Dina is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job. Yakov recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational Ana just graduated from college and is looking for a full-time position with an investment banking fim. The following table shows data on frictional, cyclical structural, and total unemployment for an economy Rate Unemployment Type (Percent) 3.9 0.0 1.1 5.0 Cydlical True or False: This economy is currently at its natural rate of unemployment. O True False

Explanation / Answer

a) Dina the estate agent is facing a "Cyclical unemployment" due to recession in the economy.

b) Yakov is facing structural unemployment.

c) Ana is facing "frictional unemployment".

"True"

Natural rate of unemployment = Frictional + structural. IF cyclical is included it is because of recession and other factors.

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.