Question

Select the correct answer from the drop-down menu.

What is comprised by frictional and structural unemployment?
`
Frictional and structural unemployment comprise {Blank} unemployment.
A) Equilibrium
B) Economic
C) Factual

Answer 1

Answer: A) Equilibrium

Step-by-step explanation:

Frictional and structural unemployment comprise equilibrium unemployment, which is also known as the natural level of unemployment and occurs even with the real wage at its market-clearing level.

Answer 2

Frictional and structural unemployment comprise ___ unemployment.

The correct answer is:
B) Economic

Frictional unemployment occurs during a period when workers are searching for new employment or transitioning from their old jobs to new jobs. It is considered voluntary unemployment because workers choose to remain unemployed rather than take the first job they are offered. Thus, frictional unemployment is usually present in an economic system because some people always search for new jobs.
Contrary to frictional unemployment, structural unemployment is a type of long-term unemployment caused by shifts in the economy. It occurs when there is an oversupply of jobs and people are willing to work, but the people searching for work are not qualified for these jobs. Some causes of structural unemployment are technological advances and decline in an industry.