Question

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will _____. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will _______. The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment.

Which of the following policies would help achieve this goal? Check all that apply

A. Increasing the benefits offered to unemployed workers through the government's unemployment insurance program
B. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government
C. Establishing government-run employment agencies to connect unemployed workers to job vacancies

Answer 1

decrease, increase,

Establishing government-run employment agencies to connect unemployed workers to job vacancies

Step-by-step explanation:

The term Unemployment describes the workers who are willing and able to work but do not have a job. Voluntary unemployment and frictional unemployment are two types of employment.

Voluntary unemployment occurs when the unemployed choose not to accept a job due to the going wage rate.

Frictional unemployment occurs when people move from one job to another.

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will decrease. The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will increase.

To reduce the temporary unemployment, government should establish to connect unemployed workers to job vacancies.