Question

Suppose the world price of steel falls substantially. The demand for labor ___ among steel-producing firms in Pennsylvania will ___ demand labor among automobile-producing firms in Michigan, for which ____ steel is an input, will ___ resulting from such sectoral shifts in the economy is best described as ___ The temporary unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?

a. Improving a widely used job-search website so that it matches workers to job vacancies more effectively
b. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government
c. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks

Answer 1

Decrease;increase;frictional

Step-by-step explanation:

Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will decrease. The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will increase. The temporary unemployment resulting from such sectoral shifts in the economy is best described as frictional unemployment.

The following policies outlined below would help achieve this goal.

1. Improving a widely used job-search website so that it matches workers to job vacancies more effectively.

2. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks.