Asked by
Michelle Hanneman
on Nov 11, 2024Verified
Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
A) Cyclical unemployment only
B) Structural unemployment only
C) Frictional,cyclical,and seasonal unemployment only
D) Frictional,seasonal,and structural unemployment only
E) Seasonal unemployment only
Cyclical Unemployment
Unemployment caused by a downturn in the economic cycle, such as a recession, which reduces the demand for goods and services.
Structural Unemployment
Unemployment caused by a mismatch between workers' skills and the requirements of available jobs, often due to technological or economic changes.
Frictional Unemployment
The short-term unemployment that arises from the process of matching workers with jobs, often due to workers changing jobs or entering the workforce.
- Identify the types of unemployment present when an economy is at its potential output level.
Verified Answer
SP
Learning Objectives
- Identify the types of unemployment present when an economy is at its potential output level.