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7. Types of unemployment In the following table, determine what type of unemployment best describes each situation. Cyclical Unemployment Structural Unemployment Frictional Unemployment Tim worked
7. Types of unemployment
In the following table, determine what type of unemployment best describes each situation.
Cyclical Unemployment | Structural Unemployment | Frictional Unemployment | ||
---|---|---|---|---|
Tim worked as a mechanic, fixing machines at a local factory, but he hasn't been able to find similar work since the factory moved out of the area to take advantage of tax incentives. | ||||
Crystal's contract ended last week, and her next contract doesn't start until next week. | ||||
Sunita was laid off from the gold mine where she worked, because a recession caused a decrease in demand for metals. |
Imagine an economy where the natural rate of unemployment is 6% and the frictional rate of unemployment is 3%. In this economy the structural rate of unemployment would be and the cyclical rate of unemployment would be . (Select ?%if the rate cannot be determined from the information given.)
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