Which statement CORRRECTLY describes "structural unemployment"?
A) Structural unemployment occurs mainly during recessions.
B) Structural unemployment is also called "frictional unemployment."
C) Structural unemployment occurs even when the economy is at the natural unemployment rate.
D) The amount of structural unemployment depends on normal labor turnover.

Question

Quizplus · Accepted Answer

Structural unemployment refers to unemployment that occurs due to changes in the structure of an economy, such as technological advancements or shifts in the demand for certain skills. Unlike frictional unemployment (which occurs when workers are transitioning between jobs), structural unemployment can persist even when the economy is at the "natural unemployment rate" (the rate of unemployment that exists even during healthy economic conditions). The amount of structural unemployment will depend on the level of normal labor turnover, but it is not limited to recessionary periods.

Which Statement CORRRECTLY Describes "Structural Unemployment