Essay
You are an employee of the Bureau of Labor Statistics involved in the monthly survey of households used to estimate the unemployment rate. In each of the following cases, classify the individual as frictionally, structurally, or cyclically unemployed. Explain your classification.
(a) There has been a general economic slow down. Because of weak demand, Andy Capp has lost his portering job at the docks.
(b) Phil McCafferty, a newly qualified dental school graduate, is looking for a place to set up practice.
(c) Coal miner Ned Ludd is thrown out of work by the introduction of a more mechanized production process.
(d) Latosha Hogan, a computer programmer with a large bank, quit her job two months ago in search of a better-paid programming position. She is still looking.
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(a) Andy is cyclically unemployed. He h...View Answer
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Correct Answer:
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(a) Andy is cyclically unemployed. He h...
View Answer
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