An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment
a. increase; cyclical
b.increase; frictional
c.decrease; cyclical
d.decrease; frictional
An increase in unemployment insurance payments would, in effect, ________ the amount of time spent searching for a job, which would increase ________ unemployment
a. increase; cyclical
b.increase; frictional
c.decrease; cyclical
d.decrease; frictional
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The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify them as structurally, frictionally, or cyclically unemployed.
1. Automobile demand has fallen in a recent recession, and Bob has been laid off from his job on the assembly line.
2. Jake became a dance instructor during the swing dance craze of the late 1990âs.However the fad had passed and heâs unable to find enough students to maintain his business.Heâs thinking about starting a yoga studio instead.
3. Hilary just Graduated from college and is looking for a full-time position with an investment banking firm.
Suppose the following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
| Unemployment type | Percent | ||||
| Frictional | 1 | ||||
| Cyclical | 1.1 | ||||
| Structural | 4.1 | ||||
| Total unemployment | 6.2 |
True or False: This economy is at full employment.
