Chapter 17.1, Problem 2R

To determine

To create a diagram defining the cyclical unemployment, structural unemployment, frictional unemployment and seasonal unemployment.

Explanation of Solution

Economics Concept Introduction

Introduction: The unemployment rate reflects the proportion of the jobless population. It is a lagging measure, which means it normally rises or falls in the wake of shifting economic conditions instead of predicting them. The unemployment rate can be expected to increase when the economy is in bad shape and jobs are scarce. If the economy rises at a steady rate, and jobs are relatively abundant, it can be expected to decline.