Ap Macro Question Pls Help!

Question

Identify the type of unemployment that would be present if each of the following individuals was actively looking for work. Explain.

1. Caroline lost her job when the mortgage company she worked for closed down as a result of a decline in the real estate market.
2. Emily is looking for a new job with higher pay and benefits.
3. Sanjay lost his job when it was outsourced to Mexico.
4. Nat lost his job because he didn’t know how to program the new computer system.
5. Deborah just graduated from college with a degree in economics.
6. Jessica lost her job at Donut Town when consumers decided they liked Donut Shack’s donuts better.

Answer 1

1. Caroline lost her job when the mortgage company she worked for closed down as a result of a decline in the real estate market. Structural Unemployment: There is a decrease in the demand for workers within one market (real estate)
2. Emily is looking for a new job with higher pay and benefits. Frictional Unemployment: Emily appears to be qualified for work and is simply taking time to find a better opportunity.
3. Sanjay lost his job when it was outsourced to Mexico. Structural Unemployment: The domestic demand for his skills has decreased because of the substitutability of foreign labor
4. Nat lost his job because he didn’t know how to program the new computer system. Structural Unemployment: Job loss because the worker's skills do not align with the demand for labor
5. Deborah just graduated from college with a degree in economics. Frictional Unemployment: New entrant to the labor market. No obvious lack of skills.
6. Jessica lost her job at Donut Town when consumers decided they liked Donut Shack’s donuts better. Structural Unemployment: There is a decrease in the demand for labor at this particular employer.