Regarding the categories of unemployment, which statement bestdescribes how the effect of sectoral changes compares to the effect offirms paying higher-than-equilibrium wages?Select one:Oa. Sectoral changes create frictional unemployment, while firmspaying wages above equilibrium create structural unemployment.O b. Sectoral changes and firms paying wages above equilibrium bothcreate frictional unemployment.O c. Sectoral changes and firms paying wages above equilibrium bothcreate structural unemployment.O d. Sectoral changes create structural unemployment, while firmspaying wages above equilibrium create frictional unemployment.Clear my choice

The unemployment which exists in any economy due to people being in the process of moving from one…

Answered: Regarding the categories of…

Regarding the categories of unemployment, which statement best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 7P

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Question

Regarding the categories of unemployment, which statement best
describes how the effect of sectoral changes compares to the effect of
firms paying higher-than-equilibrium wages?
Select one:
Oa. Sectoral changes create frictional unemployment, while firms
paying wages above equilibrium create structural unemployment.
O b. Sectoral changes and firms paying wages above equilibrium both
create frictional unemployment.
O c. Sectoral changes and firms paying wages above equilibrium both
create structural unemployment.
O d. Sectoral changes create structural unemployment, while firms
paying wages above equilibrium create frictional unemployment.
Clear my choice

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