Question

Im doing a crossword puzzle and it says " This is the lowest level of unemployment, including only functional and structural unemployment, which is usually agreed-upon to be around 4%. This would not include cyclical unemployment." It is a 25 letter word. Please help, this is for economics!

Answer 1

Answer: Clinical unemployment is not part of the natural unemployment, the natural unemployments are frictional and structural. The natural unemployment is 4%, which is OK

Explanation:

Frictional occurs when workers leave their old jobs but yet to find new one, or maybe they've saved money to look for a better job. Structural exists when shifts occur in the economy that creates a mismatch between the skills workers have and the skills needed by employers. Cyclical is when It's caused by the contraction phase of the business cyclical. Cyclical unemployment tends to create more unemployment. This is because the laid-off workers have less money to buy the goods and services they need, further lowering demand.