Question

Suppose that people choose to increase the use of e-readers and decrease the number of printed books they buy. Companies hire more workers to produce e-readers and publishing companies lay off printers. The unemployment this creates is an example of

Answer 1

Answer:

The unemployment this creates is an example of frictional unemployment created by sectoral shifts.

Explanation:

Sectoral shifts are caused when changes in the demands of a product are made on international or national levels. Due to this, the existing workers will require time to change sectors due to which frictional unemployment will be caused. Structural change leads to a reallocation of labour across industries, which generates frictional unemployment as labour moves from declining to growing sectors.