Question
6. Types of unemployment a Aa The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics Identify each of them as structurally, frictionally, or cyclically unemployed. Structural Frictional Cyclical Becky is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area. David became a dance instructor during the swing-dance craze of the late 1990s. However, the fad has passed, and he's unable to find enough students to maintain his business. He's thinking about starting a yoga studio instead. Terese is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a full-time job. Suppose the following table shows data on frictional, cyclical, structural, and total unemployment for an economy
Explanation / Answer
1) Frictional
Shifting a job and unemployed only for a very short time
2) Structural
Change in entire business due to lower demand is example of structural unemployment
3) Cyclical
Because recession is a business cycle, it is termed as cyclical unemployment
True
Recession is not there and unemployment rate is very low, This is full employment.
