Marks: 1 Consider the following: A country\'s frictional unemployment rate is 3%

Question

Marks: 1 Consider the following: A country's frictional unemployment rate is 3%, the natural unemployment rate is 5.5%, and the cyclical unemployment rate is 2.4%. Calculate the structural unemployment rate and the unemployment rate. Choose one answer. a. structural unemployment rate = 3%; the unemployment rate = 7.9% b. structural unemployment rate = 2.5%; the unemployment rate = 7.9% c. structural unemployment rate = 2.5%; the unemployment rate = 5.4% d. structural unemployment rate = 2.4%; the unemployment rate = 5.4%

Explanation / Answer

b. structural unemployment rate = 2.5%; the unemployment rate = 7.9% , because Structural unemployment results from structural changes in the economy that cause workers to lose jobs. The same structural changes also prevent these workers from obtaining new jobs. Structurally unemployed workers are not qualified for the new job openings that are available, mainly because they lack the education or training needed for the new jobs. Consequently, the structurally unemployed tend to be out of work for long periods of time, usually until they learn the skills needed for the new jobs or until they decide to relocate.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.