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Michelle Hanneman
on Nov 11, 2024

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Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?

A) Cyclical unemployment only
B) Structural unemployment only
C) Frictional,cyclical,and seasonal unemployment only
D) Frictional,seasonal,and structural unemployment only
E) Seasonal unemployment only

Cyclical Unemployment

Unemployment caused by a downturn in the economic cycle, such as a recession, which reduces the demand for goods and services.

Structural Unemployment

Unemployment caused by a mismatch between workers' skills and the requirements of available jobs, often due to technological or economic changes.

Frictional Unemployment

The short-term unemployment that arises from the process of matching workers with jobs, often due to workers changing jobs or entering the workforce.

  • Identify the types of unemployment present when an economy is at its potential output level.
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Sunil PattabhiNov 11, 2024
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