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…

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

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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.

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