Explain how some structural changes can increase the natural unemployment rate while other structural changes can decrease the natural unemployment rate
What will be an ideal response?
Any structural change creates some jobs and destroys others. The effect of structural change on the natural unemployment rate depends on how well the skills required for the new jobs align with the skills possessed by workers looking for jobs and how well the locations of the jobs align with the workers looking for jobs. If the skills and locations are similar, so that the jobs are good matches for people looking for work, then the structural change brings a structural boom and the natural unemployment rate decreases. However, if the skills and locations are different, so that the workers looking for work are not good matches for the newly created jobs, structural change creates a structural slump and the natural unemployment rate rises.
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Property rights are limited to tangible items such as land and machinery
Indicate whether the statement is true or false