Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:
A) the natural rate of unemployment.
B) full employment.
C) cyclical unemployment.
D) frictional unemployment.
E) structural unemployment.

Question

Quizplus · Accepted Answer

This type of unemployment is caused by changes in the structure of an economy, such as new technologies or shifts in consumer preferences. It is a long-term phenomenon and is not related to short-term economic cycles, which means it is not cyclical unemployment. It is also not caused by temporary factors such as job searching or seasonal changes, so it is not frictional unemployment.

Unemployment That Results from Fundamental Technological Changes in Production, or from the Substitution