Rate Unemployment Type (Percent) Frictional 3.9 Cyclical 0.0 Structural 1.1 Total unemployment 5.0 True or False: This economy is not currently at its natural rate of unemployment. True False
Rate Unemployment Type (Percent) Frictional 3.9 Cyclical 0.0 Structural 1.1 Total unemployment 5.0 True or False: This economy is not currently at its natural rate of unemployment. True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer ALL of the questions below and make sure they are right!
Transcribed Image Text:The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Rate
Unemployment Type
(Percent)
Frictional
3.9
Cyclical
0.0
Structural
1.1
Total unemployment
5.0
True or False: This economy is not currently at its natural rate of unemployment.
O True
O False
Transcribed Image Text:3. Types of unemployment
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.
Identify each person in the table as structurally, frictionally, or cyclically unemployed.
Unemployment Type
Structural
Frictional
Cyclical
Charles recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding
more of the low-skill positions for which he qualifies, so he has been unable to find work.
Automobile demand has fallen during a recent recession, and Juanita has been laid off from her job on the
assembly line.
Dina is a physician who has decided to relocate to California to be closer to her family. She is currently
interviewing with several prestigious hospitals in the San Francisco Bay Area.
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