In the Case in Point Entitled "Might Increased Structural Unemployment

question 6

Multiple Choice

In the Case in Point entitled "Might Increased Structural Unemployment Explain the 'Jobless Recovery' Following the 2001 Recession," economists Erica Goshen and Simon Potter note that when a layoff is temporary, the employer "suspends" the job, due to slack demand, and the employee expects to be recalled once demand picks up. With a permanent layoff, the employer eliminates the job. Which of the following statements is consistent with their observations?

• A) Both temporary and permanent layoffs create cyclical unemployment.
• B) Both temporary and permanent layoffs create structural unemployment.
• C) Temporary layoffs create structural unemployment while permanent layoffs create cyclical unemployment.
• D) Temporary layoffs create cyclical unemployment while permanent layoffs create structural unemployment.

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Definitions:

Umbilicus

The umbilicus, commonly known as the belly button, is the scar on the abdomen where the umbilical cord was attached in the womb, located in the umbilical region.

Inferior to Hips

Refers to a position or structure located below the level of the hips in the human body.

Waist

The part of the human body below the ribs and above the hips, often used as a measure of a person's build or for fitting clothes.

Histology

The study of the microscopic structure of tissues.