Structural unemployment arises when
A)marginal productivity of labor becomes zero.
B)there is a cyclical change in the economy.
C)jobs are eliminated by changes in the economy.
D)people change their jobs.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there are changes in the economy, such as automation, globalization, or shifts in consumer demand, that result in the elimination of certain types of jobs. This type of unemployment is not cyclical and cannot be addressed solely through economic stimulus measures.

Structural Unemployment Arises When