One source of structural unemployment is ________.

Question

Quizplus · Accepted Answer

Wage rigidity can cause structural unemployment because it may prevent wages from adjusting to market conditions, leading to an excess supply of labor in certain industries. This can result in unemployment that persists even as the overall level of economic activity improves. The other options, including seasonal production, falling sales, and high search costs, are more likely to be associated with cyclical or frictional unemployment.

One Source of Structural Unemployment Is ________