How does structural unemployment differ from frictional unemployment? What does it mean to say that the...

How does structural unemployment differ from frictional unemployment?
What does it mean to say that the country is operating at full employment?
What is “natural” about natural unemployment?
What is the difference between a job leaver and a reentrant
Suppose, 60 million people are employed, 10 million unemployed, and 30 million not in the labor force. What does the civilian noninstitutional population equal?

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Expert Solution

How does structural unemployment differ from frictional unemployment? Structural unemployment is the mismatch between the labor skills required and what skills are available. Technological advancements and jobs moving oversees are causes for structural unemployment. Frictional unemployment is normal turnover that occurs because it takes time for workers to find new jobs. Once a person changes jobs, it takes time to find a new job
What does it mean to say that the country is operating at full employment? Full employment means an economy is using its labor resources optimally. There is no involuntary unemployment only frictional and structural unemployment prevails.
What is “natural” about natural unemployment? The natural rate of unemployment is when the labor market is in equilibrium and is caused by the supply of labor. It consists of frictional and structural unemployment.
Job leaver is someone who has voluntarily quit the job and may be looking for work. Reentrant is one who has been holding a full time job and has left the labor force and is seeking to find employment.
Labor force is employed + unemployed. Employed=60 million. Unemployed= 10 million. Labor force= 60 million + 10 million=70 million. Civilian population= 70 million +30 million who are not in labor force=100 million.

Rahul Sunny answered 1 year ago

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