Final answer:
Frictional unemployment involves job transition, structural unemployment is due to economic changes, and cyclical unemployment is linked to the economy's downturns. Specific scenarios are labeled according to these definitions, and an increase in unemployment rate isn't always negative as it could indicate economic dynamism.
Step-by-step explanation:
Types of Unemployment
Frictional unemployment occurs when individuals are temporarily unemployed while transitioning from one job to another. Examples include a new graduate looking for their first job or an individual who has quit their current job to find a better one elsewhere, such as a financial analyst moving from Chicago to Arizona.
Structural unemployment results from industrial reorganization, often due to technological changes or external changes in the economy, that affect the demand for certain skills. Examples include coal miners laid off due to new environmental regulations or factory workers whose jobs have moved overseas.
Cyclical unemployment is associated with downturns in the business cycle, such as a recession. An example would be landscapers laid off because of a drop in new housing construction during a recession.
Labeling the provided scenarios:
Critical Thinking Question
An increase in the unemployment rate is not necessarily a bad thing for a nation. It may reflect a growing labor force or higher job turnover which can indicate a dynamic economy adjusting to changes.