Question
Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Structural Frictional Cyclical Automobile demand has fallen during a recent recession,
Identify each person in the table as structurally, frictionally, or cyclically unemployed.
Unemployment Type
Structural
Frictional
Cyclical
Automobile demand has fallen during a recent recession, and Ana has been laid off from her job on the assembly line.
Simone just moved with her husband to Portland, Oregon. She's looking for a job as a paralegal.
Rajiv left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs.
The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Unemployment Type Rate(Percent)
Frictional 4.0
Cyclical 0.0
Structural 1.0
Total unemployment 5.0
True or False: This economy is currently at its natural rate of unemployment.
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