Structural unemployment CANNOT be caused by:
A) minimum wages.
B) labour unions.
C) efficiency wages.
D) fluctuations in the business cycle.

Question

Quizplus · Accepted Answer

Structural unemployment refers to unemployment caused by shifts in the economy, such as changes in technology, globalization, or changes in consumer demand. It is not caused by fluctuations in the business cycle, which would fall under cyclical unemployment. Therefore, option D is the correct answer as it does not cause structural unemployment. Options A, B, and C can cause structural unemployment as they can all lead to mismatches between the skills of workers and the demands of employers.

Structural Unemployment CANNOT Be Caused By