Describe the differences between frictional, cyclical, and structural unemployment
Frictional unemployment represents the normal market process of employers and job seekers finding each
other. This type of unemployment is usually of short duration and results in a better match-up between
workers and jobs so the entire economy becomes more efficient. Structural unemployment is characterized
by job seekers not possessing the same qualifications as those being sought by employers. It is the natural
process of changing demand for goods and services that reduce the demand for certain skills and increase
the demand for other skills. Cyclical unemployment represents the decline in the demand for labor caused
by cyclical changes in business activity.
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The marginal cost incurred by the entire society to produce a good or service is the
A) marginal external cost. B) marginal private cost. C) marginal social cost. D) marginal social benefit. E) marginal private benefit.
Explain how an increase in government expenditure designed to increase aggregate demand can increase potential GDP and aggregate supply
What will be an ideal response?
The Federal Reserve can directly affect its monetary policy ________, which then affect its monetary policy ________
A) goals; targets B) targets; tools C) targets; goals D) goals; tools
Interest is paid to
A. owners of capital. B. borrowers of funds. C. all holders of stock. D. individuals who own gold.