Question

Click to select options:

Frictional unemployment

Structural unemployment

Not employed

Cyclical unemployment

Part 1: In each of the following examples, identify whether the individual is experiencing cyclical unemployment, frictional unemployment, structural unemployment, or not included in the unemploy category. a. Marge works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours. Click to select) b. Jackson just graduated from college with a business degree. He is currently looking for a job in marketing in the major city he just moved to Click to select) c. Ben is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year. (Click to select) d. Amber used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books. Click to select) Part 2: Use the table below to answer the following questions. Suppose there are 13.99 million people employed in the economy. Percent of Labor Force Cyclically Unemployed 3.07% Frictionally Unemployed 3,61% Structurally Unemployed 3.62% Instructions: Round your answers two decimal places What is the unemployment rate? % What is the natural rate of unemployment? %

Answer 1

Answer 1.a.. Not employed

reason- Marge works part time which is not considered as employed.

b. Frictional unemployment

reason- jackson is looking for a job after graduation, he is counted in frictional unemployment.

c. Cyclical unemployment

reason-Economic uncertainty causes cyclical unemployment

d. Structural unemployment

reason- change in structure of business due to competition from online retailers causes structural unemployment.

Answer 2.

Unemployment rate=3.07%+3.61%+3.62%= 10.3%

Natural rate of unemployment= 3.61%+3.62%= 7.23%