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 TypeStructuralFrictionalCyclicalVan recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training. Amy just graduated from college and is looking for a full-time position with an investment banking firm. Deborah is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job. Unemployment TypeRate(Percent)Frictional3.6Cyclical0.0Structural1.1Total unemployment4.7 True or False: This economy is not currently at its natural rate of unemployment.

Unemployment Type Van recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training. Structural unemployment because there is difference between the skills demanded in the market and the skills of available workforce. Amy just graduated from college and is looking for a full-time position with an investment banking firm. Frictional unemployment because Amy joins the workforce just now and looking for job. Deborah is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job. Cyclical unemployment because the recession is a part of cycle and short run and when economy of Deborah's region recovers, he will have employment.Unemployment Type Rate (Percent) Frictional 3.6 Cyclical 0.0 Structural 1.1 Total unemployment 4.7 "True or False: This economy is not currently at its natural rate of unemployment." FALSE, this economy is currently at its natural rate of unemployment because which is calculated by combining frictional and structural rate of unemployment.

Answered: The three people described in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

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
Van recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training.
Amy just graduated from college and is looking for a full-time position with an investment banking firm.
Deborah is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.

Unemployment Type	Rate
(Percent)
Frictional	3.6
Cyclical	0.0
Structural	1.1
Total unemployment	4.7

True or False: This economy is not currently at its natural rate of unemployment.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions