Use the following graph, which shows the unemployment rate on the vertical axis and the date on the horizontal axis, to answer question below.Percent ofLabor Force10%Line A8 –6Line B19601965197019751980198519901995200020052010What type of unemployment is most likely measured by the differences between lines A and B?Select one:O a. Cyclical unemployment.Ob.Structural unemployment.Frictional unemployment.O d. The natural rate of unemployment.

Answered: Percent of abor Force 10% Line A Line B…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Unemployment refers to a scenario in which the people belonging to the working group, who are able and willing to work at going wage rate and actively looking for the work but not able to find the work.

A high rate of unemployment is worrisome for the economy as it implies the economy is not utilising its resources efficiently. Along with this, a high rate of unemployment reduces the saving rate of the economy and increases revenue expenditure of the government. This leads to decrease in growth rate for the economic development of the country.