The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, cyclically unemployed. Unemployment Type Structural Frictional Cyclical Ginny just graduated from college and is looking for a full-time position with an investment banking firm. Eric left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs. A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Lucia. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) Frictional 3.2 Cyclical 0.0 Structural 1.1 Total unemployment 4.3 True or False: This economy is currently at its natural rate of unemployment. O True O False
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics. Identify each person in the table as structurally, frictionally, cyclically unemployed. Unemployment Type Structural Frictional Cyclical Ginny just graduated from college and is looking for a full-time position with an investment banking firm. Eric left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs. A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Lucia. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) Frictional 3.2 Cyclical 0.0 Structural 1.1 Total unemployment 4.3 True or False: This economy is currently at its natural rate of unemployment. O True O False
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 4P
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Transcribed Image Text:The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.
Identify each person in the table as structurally, frictionally,
cyclically unemployed.
Unemployment Type
Structural
Frictional
Cyclical
Ginny just graduated from college and is looking for a full-time position with an investment banking firm.
Eric left his job as a plumber when his wife took a position in another region. The quantity of plumbing
services demanded is considerably lower in the new region, in part because of high union-negotiated
wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing
jobs.
A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off
many of its employees, including Lucia.
The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Rate
Unemployment Type
(Percent)
Frictional
3.2
Cyclical
0.0
Structural
1.1
Total unemployment
4.3
True or False: This economy is currently at its natural rate of unemployment.
O True
False
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