_____ results from changes in the business cycle. a) Frictional unemployment b)

Question

_____ results from changes in the business cycle.

a) Frictional unemployment

b) Structural unemployment

c) Cyclical unemployment

d) Full employment

Roger worked in a coal mine until it went out of business. Now he is unable to find a new job because he is not qualified for any of the jobs that are available. This is an example of:

a) frictional unemployment.

b) structural unemployment.

c) cyclical unemployment.

d) seasonal unemployment.

The natural rate of unemployment occurs when _____ unemployment is zero.

a) cyclical

b) frictional

c) structural

d) natural

If structural unemployment is 2% and frictional unemployment is 3%, then the natural rate of unemployment is

a) 2%.

b) 3%.

c) 5%.

d) 6%.

If structural unemployment is 3% and frictional unemployment is 1%, then the natural rate of unemployment is:

a) 1%.

b) 2%.

c) 3%.

d) 4%.

Explanation / Answer

Solution-

Cyclical unemployment results from changes in the business cycle.

The correct option is C. Cyclical unemployment.

Reason-

Cyclical unemployment is a component of total unemployment that is related to the cyclic trends in the growth that arises during the business cycle and the product. When business cycles are on their peak, cyclical unemployment will be reduced as the total economic production is being increased.

The natural rate of unemployment occurs when Cyclical unemployment is zero.

The correct option is A. Cyclical.

Reason-

The natural rate of unemployment is in the workers who are tired and structured unemployed. It is "natural" and is the result of positive dynamic forces in the economy.When the unemployment rate is equal to the natural rate of unemployment. In other words, the economy is full employment when cyclical unemployment is zero.

If structural unemployment is 2% and frictional unemployment is 3%, then the natural rate of unemployment is 5%.

The correct option is C. 5%.

Reason-

Natural unemployment rate = Structural unemployment + Frictional unemployment

                                        = 2 + 3

                                        = 5%.

If structural unemployment is 3% and frictional unemployment is 1%, then the natural rate of unemployment is: 4%.

The correct option is D. 4%.

Reason-

Natural unemployment rate = Structural unemployment + Frictional unemployment

                                        = 3 + 1

                                        = 4%

Note : As per chegg policy we can solve only 4 MCQ, Thank You.

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