4. Sectoral shifts, frictional unemployment, and job searches. TheSuppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania willThe temporary unemploymentdemand for labor among automobile-producing firms in Michigan, for which steel is an input, willresulting from such sectoral shifts in the economy is best described asunemployment.Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all thatapply.Improving a widely used job-search website so that it matches workers to job vacancies more effectivelyTaxing the price of placing a resume or posting a job opening on a job-search websiteExtending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government

Answered: 4. Sectoral shifts, frictional…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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4. Sectoral shifts, frictional unemployment, and job searches
. The
Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will
The temporary unemployment
demand for labor among automobile-producing firms in Michigan, for which steel is an input, will
resulting from such sectoral shifts in the economy is best described as
unemployment.
Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that
apply.
Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Taxing the price of placing a resume or posting a job opening on a job-search website
Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government

Expert Solution

Step 1

Frictional Unemployment is also called as search and wait unemployment. A frictionally unemployed person will wait and search for right type of job that matches his skill set, qualification, salary, working conditions etc. Such unemployment is temporary as people are searching for the best opportunity suited to their requirements.

Law of demand states that other things being equal, an increase in price of good or service, decreases the quantity demanded and decrease in price of good or service, increases the quantity demanded.

An increase in demand shifts the demand curve towards right and decrease in demand shifts demand curve towards left.

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