Question

Types of unemployment

Answer 1

Answer:

True

Explanation:

Total unemployment is the addition of frictional, structural, and cyclical unemployment. If there is no cyclical unemployment, the economy is at its natural rate of unemployment, equal to the sum of frictional and structural unemployment. In this situation, because cyclical unemployment is 0.0%, the economy is at its natural rate of unemployment.

Also note the following :

Structural unemployment comes from a mismatch between the jobs available in some labor markets and the skills of workers. One factor which brings structural unemployment is institutional factors such as a minimum wage, which holds wages above the marginal productivity of less skilled workers, limiting their employment chances.

Frictional unemployment occurs because job seekers and employers will need some time to locate one another.

This kind of unemployment is usually brief.

Cyclical unemployment is the form of unemployment associated with business cycles. This kind of unemployment rises during recessions and falls during expansions. Because Janet seems jobless because of the recession, she would generally be considered to be cyclically unemployed.