Structural unemployment can be caused by all of the following EXCEPT:
A)minimum wages.
B)labor unions.
C)efficiency wages.
D)fluctuations in the business cycle.

Question

Quizplus · Accepted Answer

Structural unemployment is caused by factors that make it difficult for workers to find employment due to a mismatch between their skills and the available job openings. Minimum wages and labor unions can contribute to structural unemployment by increasing the cost of labor and making it difficult for certain groups of workers to enter the market. Efficiency wages, which are wages that are higher than the market equilibrium, can also lead to structural unemployment by reducing the number of available jobs. However, fluctuations in the business cycle do not directly cause structural unemployment. They may contribute to overall unemployment levels, but they do not create a mismatch between workers and available jobs.

Structural Unemployment Can Be Caused by All of the Following