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:

North America

A continent located in the northern hemisphere, mainly between the Atlantic and Pacific Oceans, comprising countries like the United States, Canada, and Mexico.

Internationalization Process

The strategic process that a company undergoes to expand its operations and presence into foreign markets.

Direct Foreign Investment

An investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

Ethnocentric Attitude

Holding the belief that one's own culture, nation, or ethnicity is superior to others, often leading to bias and prejudice.