Explain what causes the three types of unemployment. What advice for finding a job would be appropriate for someone in each type of unemployment?
What will be an ideal response?
Frictional unemployment is the unemployment that arises from the process of matching workers with jobs. These workers are qualified and just need to search for a job. The advice for finding a job would be to keep searching because there are jobs available for which they are qualified.
Structural unemployment is unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of the available jobs. The advice for finding a job would be to retrain so that they can match up with the requirements of current jobs.
Cyclical unemployment is unemployment caused by a recession. The advice for finding a job would be to continue searching for a job, but realize that there are fewer jobs available than the number of applicants. The cyclically unemployed person could perhaps get a temporary job until the economy improves, or perhaps consider continuing his or her education while the recession lasts.
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a. appropriate as long as the loanable funds market is in equilibrium b. ethical as long as everyone who receives it earns it c. allowable if the income is earned, not inherited d. necessary otherwise no loanable funds would be provided e. objectionable because property ownership, including ownership of capital, is unjustifiable
If the equilibrium exchange rate is $1 = 90 yen, then at an exchange rate of $1 = 80 yen there is a
A) surplus of yen. B) shortage of yen. C) shortage of dollars. D) a and c E) b and c