Advance notice of lay-offs should help to reduce
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment and frictional unemployment.
D) frictional unemployment and structural unemployment.

Question

Quizplus · Accepted Answer

Advance notice of lay-offs can reduce both frictional unemployment and structural unemployment. Frictional unemployment occurs when workers are temporarily between jobs, while structural unemployment occurs when there is a mismatch between the skills of available workers and the requirements of available jobs. By providing advance notice, workers have more time to search for new job opportunities, reducing frictional unemployment. Additionally, if workers are aware of impending layoffs, they may invest in new skills or training to better match the demands of the labor market, reducing structural unemployment. However, advance notice may not have as much impact on cyclical unemployment, which is a result of fluctuations in the overall economy.

Advance Notice of Lay-Offs Should Help to Reduce