Determine the correct type of unemployment, or if they’re not unemployed, for each of the following.

Question

1.Reduced consumer spending across the economy causes people in many

industries to lose their jobs.

2.Grocery clerks lose their jobs and are replaced by self-serve checkout stations.

3.Linda is a recent college graduate looking for her first job.

4.Jerry lost his job and was replaced by a machine but has returned to school full-

time to get his bachelor’s degree.

5.In an economy, 8 people are working. Four people are not working but only 2 of

those 4 are looking for jobs. What is the unemployment rate?

Answer 1

1) Cyclical unemployment

2) Structural unemployment

3) Frictional unemployment

4) Not unemployed because he is not looking for a job

5) Unemployment rate = # of unemployed / labor force

= 2 / 10 = 20%