The Sectoral Shifts Hypothesis Claims That

The sectoral shifts hypothesis claims that

A) cyclical unemployment will always exceed frictional unemployment.
B) frictional unemployment will cause workers to extend their temporary lay-offs.
C) most unemployed workers will return to their previous job because the firm knows the skills of the worker.
D) there will always be a pool of unemployed workers who find jobs quickly (i.e., the frictionally unemployed) .
E) there will always be a pool of unemployed workers who experience long spells of unemployment because their skills do not match those that employers are looking for (i.e., the structurally unemployed) .