Teenagers have the highest unemployment rates of any group. One reason for this phenomenon is high transportation costs for many minority teens. What form of unemployment (cyclical, frictional, or structural) do high transportation costs suggest?

You must decide what kind of unemployment exists and WHY HIGHER TRANSPORTATION COSTS make it so.

Note: This question is worth 5 marks. You must be thorough (not repetitive) in your answer. Fully explain your choice and why you made that choice. You must answer in the space provided.

Question 5: (5 marks)

Note: This question is worth 5 marks. You must use the terms discussed in the lesson to clearly demonstrate your understanding of this material. I am evaluating particular concepts here, so be specific in your answer. Be thorough (not repetitive) in your answer as well. You must answer in the space provided.

	Your answer	Marks
Under what conditions do you expect to see an inflationary gap?		1.5
Under what conditions do you expect to see a recessionary gap?		1,5
How is it possible to measure the amount of lost output (GDP) due to cyclical unemployment?		2