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Suppose the world price of steel falls substantially. the demand for labor among steel-producing firms in pennsylvania willincrease. the demand for labor among automobile-producing firms in michigan, for which steel is an input, willincrease. the temporary unemployment resulting from such sectoral shifts in the economy is best described ascyclical unemployment.

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  1. Today, 14:20
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    If the world price of steel has fallen substantially, the likely outcome of this matter are the following;

    - the labor demand in regards of the steel producing firms in Pennsylvania will likely decrease

    - In regards with the labor among the auto-mobile producing firms in Michigan, as the steel they use is for input, it is likely that it will increase

    - Whereas the temporary unemployment that results from sectoral shifts in the economy is described to be a frictional unemployment.
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