Structural unemployment arises from fluctuations over the business cycle.

Question

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Structural unemployment refers to a mismatch between the skills and qualifications of workers and the requirements of available jobs in the economy. This type of unemployment is not caused by cyclical changes in the business cycle, but rather by more long-term changes such as technological advances or changes in consumer demand. Cyclical unemployment, on the other hand, is caused by fluctuations in the business cycle.

Structural Unemployment Arises from Fluctuations Over the Business Cycle