There will be structural unemployment if
A)some wages are kept above their equilibrium level.
B)some people choose not to work at the equilibrium wage.
C)some wages are below their equilibrium level.
D)There can be structural unemployment under all the possibilities above.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there are mismatches between the skills and qualifications of workers and the requirements of available jobs. Keeping some wages above their equilibrium level can lead to structural unemployment because it may cause employers to hire fewer workers or seek out cheaper labor alternatives, leaving some workers without job opportunities. Therefore, choice A is the best option.

There Will Be Structural Unemployment If