The country of Econoland released their economic statistics for the previous fiscal year today. Overall, unemployment increased to 4.5%, a factor made worse by the closing of the nation's main employer, National Horse and Buggy. Jobs were added, however, in the road-building sector of the economy, as more people began driving cars this year. Government economists were not worried by the loss of jobs during June, July, and August, as tourism often declines in the warmest months each year. Inflation, which was under control for much of the year, spiked unexpectedly in the 4th Quarter, likely due to the rapid rise in prices of Econoland's imported fuel. The year ended with an inflation rate, which had been 3.4% until Q4, at over 8%.

Which TWO forms of unemployment are being described in this passage?

A) Structural and Seasonal

B) Cyclical and Structural

C) Frictional and Cyclical

D) Seasonal and Frictional

2) Who would MOST likely be NEGATIVELY affected by the inflation described in this passage? (People who borrowed money from Econoland banks. *This would actually BENEFIT borrowers if wages increased with inflation, but we don't know that from the passage.* Banks collecting loans from Econoland citizens.

A) Retired people living in Econoland.

B) People who regularly vacation to Econoland.

C) Banks collecting loans from Econoland citizens.

D) People who borrowed money from Econoland banks.