From time to time, the demand for workers has risen in one region of Canada and fallen in another. Which type of unemployment does this occurrence illustrate?
A) frictional unemployment created by efficiency wages
B) structural unemployment created by efficiency wages
C) frictional unemployment created by sectoral shifts
D) structural unemployment created by sectoral shifts

Question

Quizplus · Accepted Answer

This scenario illustrates frictional unemployment caused by sectoral shifts, where changes in the demand for labor across different sectors or regions lead to temporary unemployment as workers move or seek new employment.

From Time to Time, the Demand for Workers Has Risen