Describe the differences between frictional, cyclical, and structural unemployment
Frictional unemployment represents the normal market process of employers and job seekers finding each
other. This type of unemployment is usually of short duration and results in a better match-up between
workers and jobs so the entire economy becomes more efficient. Structural unemployment is characterized
by job seekers not possessing the same qualifications as those being sought by employers. It is the natural
process of changing demand for goods and services that reduce the demand for certain skills and increase
the demand for other skills. Cyclical unemployment represents the decline in the demand for labor caused
by cyclical changes in business activity.
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If output decreases, which of the following would occur?
a. Prices of non-labor inputs, input requirements per unit of output and unit costs would all increase and the economy would move upward along the aggregate supply curve. b. Prices of non-labor inputs, input requirements per unit of output and unit costs would all decrease and the economy would move upward along the aggregate supply curve. c. Prices of non-labor inputs, input requirements per unit of output and unit costs would all increase and the economy would move downward along the aggregate supply curve. d. Prices of non-labor inputs, input requirements per unit of output and unit costs would all decrease and the economy would move downward along the aggregate supply curve. e. Prices of non-labor inputs would decrease, input requirements per unit of output would increase and the economy would move upward along the aggregate supply curve.
In 2012, the imaginary nation of Dorados had a population of 8,000 and real GDP of 3,000,000 . During the year its real GDP grew by about 2.9%. Which of the following sets of growth rates is consistent with this growth in real GDP?
a. 2% population growth and 6% real GDP growth b. 6% population growth and 2% real GDP growth c. 4% population growth and 7% real GDP growth d. 7% population growth and 4% real GDP growth