During the early 1990s, many workers in military-related industries lost their jobs as the defense budget was reduced. Unemployment of this type is called
A) cyclical unemployment.
B) the natural rate of unemployment.
C) frictional unemployment.
D) structural unemployment.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when workers lose their jobs due to changes in the structure of the economy, such as technological advances or shifts in consumer demand. The reduction in the defense budget led to a decrease in demand for military-related products and therefore resulted in job losses for workers in those industries, which is an example of structural unemployment.

During the Early 1990s, Many Workers in Military-Related Industries Lost