If changing consumer preferences increase the demand for satellite radios and decrease the demand for video cassette recorders, the economy will likely exhibit

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when there is a mismatch between the skills of workers and the demands of the job market, often due to changes in consumer preferences or technological advancements. As demand shifts from video cassette recorders to satellite radios, workers may need time to transition to new roles, leading to frictional unemployment.

If Changing Consumer Preferences Increase the Demand for Satellite Radios