Debate on Causes of Unemployment Two economists are debating the cause of a high unemployment rate. One economist argues that there is not enough government spending. The other says high unemployment is a structural problem—people who can’t move to take new jobs because they are tied down to burdensome mortgages or firms that can’t find workers with the skills they need to fill job openings.

a. Which business cycle theory would say that the first economist is correct and why?

b. Which business cycle theory would say that the second economist is correct and why?