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If any unemployment exists during expansion phase of business cycle, it is _____ unemployment.
- a)voluntary and frictional
- b)technological and structural
- c)frictional and structural
- d)structural and involuntary
Correct answer is option 'C'. Can you explain this answer?
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Verified Answer
If any unemployment exists during expansion phase of business cycle, i...
ANSWER
- c)frictional and structural
Frictional unemployment involves people transitioning between jobs; it has nothing to do with the economic cycle and is voluntary. Structural unemployment is a direct result of shifts in the economy, including changes in technology or declines in an industry.
Most Upvoted Answer
If any unemployment exists during expansion phase of business cycle, i...
Explanation:
Business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It has four phases - expansion, peak, contraction, and trough. During the expansion phase, the economy experiences growth in economic activity, increased employment, and rising prices.
However, even during the expansion phase, there may be some unemployment due to various reasons. The different types of unemployment are:
1. Voluntary unemployment: This refers to the situation where workers choose not to work even though jobs are available. For example, a person may choose to stay at home to take care of their children or pursue further studies.
2. Frictional unemployment: This refers to the unemployment that arises due to the time taken by workers to search for suitable jobs. This may occur due to a mismatch between the skills of the workers and the available jobs or due to geographical location.
3. Structural unemployment: This refers to the unemployment that arises due to changes in the structure of the economy. This may occur due to technological advancements or changes in consumer preferences, which may lead to certain industries becoming obsolete and workers losing their jobs.
In the given question, if any unemployment exists during the expansion phase of the business cycle, it is frictional and structural unemployment. This is because during the expansion phase, the economy is growing, and there are plenty of job opportunities available. However, there may still be some unemployment due to the time taken by workers to search for suitable jobs or due to changes in the structure of the economy.
Hence, option C - frictional and structural unemployment - is the correct answer.
Business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It has four phases - expansion, peak, contraction, and trough. During the expansion phase, the economy experiences growth in economic activity, increased employment, and rising prices.
However, even during the expansion phase, there may be some unemployment due to various reasons. The different types of unemployment are:
1. Voluntary unemployment: This refers to the situation where workers choose not to work even though jobs are available. For example, a person may choose to stay at home to take care of their children or pursue further studies.
2. Frictional unemployment: This refers to the unemployment that arises due to the time taken by workers to search for suitable jobs. This may occur due to a mismatch between the skills of the workers and the available jobs or due to geographical location.
3. Structural unemployment: This refers to the unemployment that arises due to changes in the structure of the economy. This may occur due to technological advancements or changes in consumer preferences, which may lead to certain industries becoming obsolete and workers losing their jobs.
In the given question, if any unemployment exists during the expansion phase of the business cycle, it is frictional and structural unemployment. This is because during the expansion phase, the economy is growing, and there are plenty of job opportunities available. However, there may still be some unemployment due to the time taken by workers to search for suitable jobs or due to changes in the structure of the economy.
Hence, option C - frictional and structural unemployment - is the correct answer.
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Community Answer
If any unemployment exists during expansion phase of business cycle, i...
Explanation:
Business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of four phases - expansion, peak, contraction, and trough.
During the expansion phase of the business cycle, the economy is growing, and there is an increase in economic activity. However, even during this phase, there may be some unemployment in the economy. This unemployment can be classified as voluntary or frictional unemployment.
Voluntary Unemployment:
Voluntary unemployment occurs when individuals choose not to work. This may be due to various reasons such as personal reasons, family obligations, or pursuing further education.
Frictional Unemployment:
Frictional unemployment occurs when there is a temporary mismatch between the skills of workers and the available job openings. This type of unemployment is common in any economy and is considered to be a natural part of the job search process.
Therefore, if any unemployment exists during the expansion phase of the business cycle, it is classified as frictional and voluntary unemployment. Hence, option C is the correct answer.
Business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of four phases - expansion, peak, contraction, and trough.
During the expansion phase of the business cycle, the economy is growing, and there is an increase in economic activity. However, even during this phase, there may be some unemployment in the economy. This unemployment can be classified as voluntary or frictional unemployment.
Voluntary Unemployment:
Voluntary unemployment occurs when individuals choose not to work. This may be due to various reasons such as personal reasons, family obligations, or pursuing further education.
Frictional Unemployment:
Frictional unemployment occurs when there is a temporary mismatch between the skills of workers and the available job openings. This type of unemployment is common in any economy and is considered to be a natural part of the job search process.
Therefore, if any unemployment exists during the expansion phase of the business cycle, it is classified as frictional and voluntary unemployment. Hence, option C is the correct answer.
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If any unemployment exists during expansion phase of business cycle, it is _____ unemployment.a)voluntary and frictionalb)technological and structuralc)frictional and structurald)structural and involuntaryCorrect answer is option 'C'. Can you explain this answer?
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