Economics · Unemployment types
Match each description to the correct type of unemployment: (1) Caused by wages being maintained above market-clearing levels, often in unionised industries (2) Caused by insufficient aggregate demand during economic downturns (3) Short-term unemployment occurring while individuals transition between jobs (4) Caused by a mismatch between workers' skills and the skills demanded by employers
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(1) Real wage, (2) Frictional, (3) Cyclical, (4) Structural
- 2(1) Structural, (2) Cyclical, (3) Frictional, (4) Real wage
- 3(1) Cyclical, (2) Real wage, (3) Structural, (4) Frictional
- 4(1) Real wage, (2) Cyclical, (3) Frictional, (4) Structural✓
Correct answer
(1) Real wage, (2) Cyclical, (3) Frictional, (4) Structural
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