MINDTAP omework (Ch 20) at 2 PM EST 3. Types of un The three people described in
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Question
MINDTAP omework (Ch 20) at 2 PM EST 3. Types of un The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Unemployment Type Structural Frictional Cyclical with her husband to Portiand, Oregon. She's looking for a job as a paralegal. Alex recently lost his job as a walter at a loca I restaurant. A recent increase in the minimum wage keeps which he qualifies, so he has been unable local employers from adding more of the low-skill positions for to find work. He continues to look for a job, but he's considering going back to school for vocational has reduced the number of visitors to a local theme park. The park has had to lay off The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. 3.0 0.0 1.0 4.0Explanation / Answer
Correct Answer:
Case of Becky : Frictional unemployment
Becky is moving to a new city. Hence, she left the job and trying to get new job. It is the example of Frictional unemployment.
Case of Alex : Structural Unemployment
Alex became unemployed due to the minimum wage policy. It is the case of structural unemployment.
Case of Recession: Cyclical Unemployment
Unemployment due to recession is the result of slowdown phase in trade cycle. So, it is the case of cyclical unemployment.
Correct Answer:
True
Explanation:
Natural rate of unemployment is the sum of structural and frictional unemployment. In the given scenario, the natural rate of unemployment is 3%. In general, the natural rate of unemployment is considered to be 4%. Since, the existing rate is already lower than the 4%, then the economy is operating at full employment.
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