Question
9 . Types of unemployment The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each
9 . 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 | |
|---|---|---|---|---|
| Nick recently lost his job as a delivery driver. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. | ||||
| A recent recession has reduced the number of visitors to a local water park. The park has had to lay off many of its employees, including Alyssa. | ||||
| Rosa just moved with her husband to Bismark, North Dakota. She's looking for a job as a judicial clerk. |
The following table presents data on frictional, cyclical, structural, and total unemployment for an economy.
| Unemployment Type | Rate |
|---|---|
| (Percent) | |
| Frictional | 3.0 |
| Cyclical | 0.0 |
| Structural | 1.0 |
| Total unemployment | 4.0 |
True or False: This economy is not currently at its natural rate of unemployment.
True
False
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
