Reference no: EM133082535
Described in each of the following scenarios as either frictionally, structurally, or cyclically unemployed.
Canisha left her former job at a pharmaceutical firm a month ago. She is in the process of interviewing for a similar position at six different pharmaceutical firms, although she has not accepted a job yet.
Gina is unemployed because she is in the process of reentering the labor force after taking time off to have a baby.
Sydney is unemployed because she lost her job at WalMart after the state increased the minimum wage.
Ashok is currently unemployed because the tire factory where he used to work installed robots, which replaced 500 laborers, including Ashok.
Martin is unemployed because he was laid off by the IT firm when the economy entered a severe, prolonged recession.
Answer the following:
What do economists mean by the natural rate of unemployment?
What can the government do to change the amount of frictional, cyclical and structural unemployment?
What can you deduce if the actual rate of unemployment exceeds the natural rate of unemployment?