Question

1) Recession 2) trough - Which is the worst type of un 3) expans 4) 4. employment (CIRCLE ONE: Cyclical, Frictional, Structural) WHY 5. Define the following types of products and give an example of each typs: a) Durable Good- b) Nondurable Good- c) Capital Good- d) Service- e) Which of the above productis) are affected the most by a business eycle? WHY? 6. Which demographic group (CIRCLE ONE: Professional, Women, African American, Ages 16- 19, College Graduate) typically has the highest unemplovment rate? WHY?

Answer 1

4. Structural unemployment is the worst kind of unemployment because it is harder to correct as compared to other types of unemployment. In other words, structural unemployment is the most challenging to get rid of as compared to other types. Long-term unemployment is caused by structural unemployment while as those who are unemployed must acquire new skills to overcome it.