Environmental regulation reduces the demand for West Virginia coal and the unemployment rate in West Virginia increases. This is an example of

Question

Quizplus · Accepted Answer

This is an example of structural unemployment because it results from changes in the structure of the economy, namely the reduction in demand for coal due to environmental regulation. Frictional unemployment is short-term unemployment due to the time it takes for individuals to find a new job, while cyclical unemployment is caused by fluctuations in the economy. Regulatory unemployment is not a recognized category of unemployment.

Environmental Regulation Reduces the Demand for West Virginia Coal and the Unemployment