What Types of Unemployment Can Exist in an Economy That

question 10

Multiple Choice

What types of unemployment can exist in an economy that is at its potential output level?  

• A) only cyclical unemployment 
• B) only structural unemployment 
• C) frictional, cyclical, and seasonal unemployment 
• D) frictional, seasonal, and structural unemployment

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Definitions:

Demand for Output

The desire and willingness of consumers or businesses to purchase goods or services produced within an economy.

Frictionally Unemployed

Individuals temporarily out of work while transitioning from one job to another or actively searching for new employment.

Searching for a Job

The process individuals engage in to find employment opportunities matching their skills and preferences.

Unemployment Insurance

A government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own, aiming to reduce the financial burden of unemployment.