Suppose the demand for construction workers increased and the demands for textile and steel workers diminished. This is an example of
A)frictional unemployment created by efficiency wages.
B)structural unemployment created by efficiency wages.
C)frictional unemployment created by sectoral shifts.
D)structural unemployment created by sectoral shifts.

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by temporary factors, such as workers searching for new jobs or employers searching for new workers. Sectoral shifts are changes in the demand for goods and services, which can lead to job losses in some industries and job gains in others. In this case, the demand for construction workers increased, while the demand for textile and steel workers diminished. This is an example of frictional unemployment created by sectoral shifts.

Suppose the Demand for Construction Workers Increased and the Demands