Purchase Solution

What is the difference between structural unemployment & cyclical unemployment and what type of unemployment is best studied within the long-run framework?

Not what you're looking for?

Ask Custom Question

1) What is the difference between structural unemployment and cyclical unemployment?

a) What type of unemployment is best studied within the long-run framework? Why?

b) Does the unemployment rate underestimate or overestimate the unemployment problem? Explain.

c) If unemployment rises by 2 percentage points, what will likely happen to output in the United States?

2) Inflation, on average, makes people neither richer nor poorer. Therefore it has no cost. True or false? Explain.

Purchase this Solution
Solution Summary

Here is just a sample of what you will find in the solution:

"Another type of unemployment is Frictional Unemployment. This represents those individuals that have left one job but are certain to begin their new job within..."

Solution Preview

1) Structural unemployment occurs when the structure of industry changes. As an economy develops over time the type of industries may well change. This may be because people's tastes have changed or it may be because technology has moved on and the product or service is no longer in demand.

Cyclical Unemployment results from changes in the business cycle. An example of cyclical unemployment is layoffs and cutbacks resulting from a recessionary economic phase. This occurs when individuals suffer job losses due to changes in the economic (business) cycle. Often as growth in economic activity reaches its peak and begins transition to a contraction, employers will begin to curtail production, to avoid additions to accumulating inventories, and thus begin to furlough a fraction of their workforce.
Another type of unemployment is Frictional Unemployment. This represents those individuals that have left one job but are certain to begin their new job within a relatively short period of time. Often this type of unemployment accounts for those in-between jobs and is the result of individuals responding to market forces in the economy.

a) Structural unemployment is the type of unemployment best studied in the long term framework. This is because this type of unemployment represents a change taking place within a certain economy and may suggest changes in ...

Purchase this Solution
Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Basics of corporate finance

These questions will test you on your knowledge of finance.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • type of unemployment

    25580 Types of Unemployment Best Studied Within the Long-Run Framework 1. What type of unemployment is best studied within the long-run framework? What type is best studied under the short-run framework? Explain why.

  • Discussion on Economic Indicators

    Although both Structural unemployment and cyclical unemployment most often happen during each recessions, the difference is that Cyclical unemployment is "temporary" and is easily cured after each recession.

  • The Three Types of Unemployment and their Effect to the Firm

    Employers seek workers who have one type of skill and workers seeking employment have a different type of skill. This mismatch in skills, largely the result of technological progress, creates unemployment of the structural variety".

  • Types of unemployment, Inflation and Deflation

    However, this is only applicable in the short term view. In the long run, there seems to be no direct connection between inflation and unemployment. Solution clearly explains the different types of Unemployment and how they affect the economy.

  • Different Types of Unemployment

    Which of these are serious concerns for an economy? What type of unemployment is caused by the recession? Okay, great. The good news is that these three are fairly easy to define.

  • Types of Unemployment and Policy Makers

    619653 Types of Unemployment and Policy Makers 1. Compare and contrast the three types of unemployment: Frictional Unemployment, Structural Unemployment & Cyclical Unemployment.

  • Structural, Cyclical & Frictional Unemployment

    588658 Structural, Cyclical & Frictional Unemployment Please help answer the following discussion questions: What are the three types of unemployment? Unemployment is seen by some as undesirable. Are all three types of unemployment undesirable?

  • Concerns in Today's Ecomoy: Unemployment and the Economy

    How does the exclusion of the discouraged worker affect the basic unemployment rate reported in the media? What is frictional unemployment? What is structural unemployment? What is cyclical unemployment?

  • Frictional, Structural, or Cyclical Unemployment

    I need to know what would cause the shift in % for each group and if each group is a form of frictional, structural, or cyclical unemployment and why. 1. unemployment rate, bachelors degree and higher, 25 years and older August 05: 2.1% August

View More Related Solutions