1) The text outlines three kinds of unemployment: Frictional, Structural, and Cyclical. The Bureau of Labor Statistics describes a fourth kind, seasonal unemployment, as: "The seasonal fluctuations in the number of employed and unemployed people reflect not only the normal seasonal weather patterns that tend to be repeated year after year but also the hiring (and layoff) patterns that accompany regular events such as the winter holiday season and the summer vacation season." Of the four, structural unemployment is the most challenging for people.

In this discussion assignment, provide an example of each kind of unemployment you have either experienced or witnessed. Consider what you might personally do to avoid structural unemployment in your own career.

2)If the technological change increases structural unemployment, why do most governments and economists encourage such change? Cite references to material that you use in preparing the essay.

Be sure to coverat least threeof the following concepts:

• Definition of technological change
• Definition of structural unemployment
• Impact of technological change on employment
• Impact of technological change on future production
• Impact of technological change on the economy

Include a discussion of the following topics:

• How does an economy recover from structural unemployment?
• What government actions help to facilitate this recovery?

Be sure to include one example.

3) Many people think that the process of putting computer technology to work and incorporating computers into the workplace is causing a massive restructuring of virtually every institution of modern life. If they are right, what are the implications for unemployment? What kind of unemployment would be affected?

4) The natural unemployment rate in the United States has varied over the last 50 years. According to the Congressional Budget Office, the natural rate was 5.5% in 1960, rose to about 6.5% in the 1970s, and had declined to about 4.8% by 2000. What do you think might have caused this variation?

5) Suppose the Fed begins carrying out an expansionary monetary policy to close a recessionary gap. Relate what happens during the next two phases of the inflation-unemployment cycle to the maxim "You can fool some of the people some of the time, but you can't fool all of the people all of the time."

6)Suppose that declining resource supplies reduce potential output in each period by 4%. What kind of monetary policy would be needed to maintain a zero rate of inflation at full employment