Different types of unemployment pose different problems to the economy. Compare and contrast three types of unemployment. Explain how much of a problem each poses compared to the others.

What will be an ideal response?

Answers to this question will vary but should clearly identify three types of
unemployment, such as frictional, structural, and cyclical. Students should compare and
contrast each of the three types of unemployment and explain what types of challenges
each poses to the economy. For example, students might explain that frictional and
structural unemployment will be present in any economy. However, whereas frictional
employment can benefit the economy by allowing workers and firms to find the right
skills matches, structural unemployment can be more serious, revealing workers who
lack the skills to find work and are less productive than other workers. Cyclical
unemployment is the most problematic and can exacerbate fluctuations in the economy,
worsening recessions and even turning into a depression.