1. What is the difference between "cyclical unemployment" and "frictional unemployment"? Which are we generally referring...

1. What is the difference between "cyclical unemployment" and "frictional unemployment"? Which are we generally referring to when the phrase "unemployment" is used in the news, etc.?

2. Do you think technological advances will add to "structural unemployment" in the future? Why or why not?

Solutions

Expert Solution

1. Cyclical employment occurs due to the ups and downs in the business cycle of the economy while frictional unemployment occurs because of the time taken by the labourers to change to new jobs either because of change in technology or updating of skills of labourers. The type of unemployment usually reported in news is cyclical unemployment. For example, the newspaper will report increase in unemployment due to an economic downturn but not because of job transitions since the former captures the state of the economy better.

2. Structural unemployment occurs when the people fail to get jobs due to lack of employment opportunities because their skills are not in accordance with the kind of jobs available. Technological advances will make the skills of former workers obsolete and they may be employed in the new economy only if their skills are adequately updated according to the economic trends. This will make many workers unemployed and this is structural unemployment. Therefore, technological advancement will lead to structural unemployment.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What is the difference between Cyclical, Frictional and Structural unemployment? If you were advising the government...

What is the difference between Cyclical, Frictional and Structural unemployment? If you were advising the government which would you consider to be of greatest concern(explain why)?

Explain the difference between cyclical, frictional, and structural unemployment and how they relate to the natural...

Explain the difference between cyclical, frictional, and structural unemployment and how they relate to the natural rate of unemployment. Our current inflation rate in the United States is 1.8%. Explain as clearly as possible what that number means, how it is calculated, and how it compares to our goal for inflation. Explain why economists use models and what the AD/AS model helps us understand. How are the Keynesian and neoclassical perspectives on the economy different, and how is it possible...

What is the difference between Structural unemployment and Frictional Unemployment What is the difference between fiscal...

What is the difference between Structural unemployment and Frictional Unemployment What is the difference between fiscal policy and monetary policy? List the three components of M1 What is Open Market Operation

How to distinguish between frictional, structural, and cyclical unemployment? Why is unemployment an economic problem? What...

How to distinguish between frictional, structural, and cyclical unemployment? Why is unemployment an economic problem? What are the social effects of unemployment?

1. How to distinguish between frictional, structural, and cyclical unemployment? Why is unemployment an economic problem?...

1. How to distinguish between frictional, structural, and cyclical unemployment? Why is unemployment an economic problem? What are the social effects of unemployment? 2. Why do economists include only final goods and services when measuring GDP for a particular year? Why don’t they include the value of the stocks and bonds bought and sold? Why don’t they include the value of the used furniture bought and sold? 3. Suppose that, on the basis of a nation’s production possibilities curve, an...

What are cyclical, frictional, and structural unemployment? The natural rate of unemployment equals frictional plus structural...

What are cyclical, frictional, and structural unemployment? The natural rate of unemployment equals frictional plus structural unemployment. Countries with higher unemployment insurance benefits tend to have higher natural rates of unemployment. Do you think that more generous unemployment benefits raise u* by reducing the finding rate or increasing the separation rate?

The three generally recognized types of unemployment are Voluntary, potential, and residual. Frictional, structural, and cyclical....

The three generally recognized types of unemployment are Voluntary, potential, and residual. Frictional, structural, and cyclical. Involuntary, temporary, and disciplinary. Teenage, female, and nonwhite. Classical, Keynesian, and post-Keynesian. People temporarily out of work because they are changing jobs or looking for their first jobs are example of Structural unemployment. Cyclical unemployment. Frictional unemployment. Inflationary unemployment. Residual unemployment. People actively looking for work who cannot find jobs because of an insufficiency of aggregate demand are examples of Frictional unemployment. Structural unemployment....

how was frictional unemployment and structural unemployment differrent from cyclical unemployment ?

What is the difference between cyclical unemployment, full employment, and the natural rate of unemployment?

6. What is the difference between the natural rate of unemployment and cyclical unemployment? How are...

6. What is the difference between the natural rate of unemployment and cyclical unemployment? How are these related to structural and frictional unemployment? The President of the Minneapolis Federal Reserve Branch Bank has suggested the natural rate may have decreased in recent years. Offer some reasons why he may be correct.

Subjects