Match the definition with the correct type of unemployment. Not all of the terms will be used. (a) Unemployment caused by recessions (b) Unemployment that normally occurs due to turnover as workers switch jobs (c) The unemployment rate that exists when the economy is operating at potential (1) frictional unemployement (2) natural unemployment rate (3) cyclical unemployment puzzle (4) unemployment rate (5) structural unemployment

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Business

Kamila Vargas

11 February, 16:29

Match the definition with the correct type of unemployment. Not all of the terms will be used. (a) Unemployment caused by recessions (b) Unemployment that normally occurs due to turnover as workers switch jobs (c) The unemployment rate that exists when the economy is operating at potential (1) frictional unemployement (2) natural unemployment rate (3) cyclical unemployment puzzle (4) unemployment rate (5) structural unemployment

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Answers (1)

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Shyanne Wheeler · Answer 1

the answers are,

(a) Unemployment caused by recessions : cyclical unemployment

(b) Unemployment that normally occurs due to turnover as workers switch jobs: frictional unemployment

c) The unemployment rate that exists when the economy is operating at potential : natural unemployment rate

Explanation:

Cyclical unemployment is called that because this is a natural part of the economic booms and busts, meaning that when the economy is growing there is a low unemployment rate and when there are slower and recessive developments, the rate tends to be higher.

Frictional unemployment is a short term rate as it only exists during the shifts of the workers.

Natural unemployment rate is the average rate that exists even when the economy is functioning normally. this exists mainly due to several common reasons such as number of people who can't do a job, the demographics of the workforce, etc.