The unemployment resulting from wage rigidity and job rationing is called ______ unemployment.
A) frictional
B) structural
C) minimum-wage
D) insider

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers, often exacerbated by wage rigidity and job rationing, which prevents wages from falling to a market-clearing level.

The Unemployment Resulting from Wage Rigidity and Job Rationing Is