Fill in the Blanks Module 13Online version The Types of Unemployment - Fill-in-the-Blank by Zachary Foust 1 plentiful feasible An unemployment rate of 0 percent isn't . There is substantial unemployment even when jobs are . 2 good productive time personal unintended entering voluntarily find benefits searching Workers are constantly leaving jobs due to family moves , dissatisfaction , and better job prospects elsewhere . Frictional unemployment is due to the time workers spend in job search after a change in circumstances . A certain amount of frictional unemployment is inevitable because new workers are always the labor market . A limited amount of frictional unemployment is a thing because the economy is more if workers take the to find jobs that are well matched to their skills . Public policy designed to help workers who lose their jobs can lead to frictional unemployment as an side effect . Most economically advanced countries provide to laid - off workers , which reduces the incentive to quickly a new job . By keeping more people for longer , unemployment benefits increase frictional unemployment . 3 seeking incentive available region wage labor skill supply structural floor unions demand skill structural region surplus structural excess Sometimes , there is a persistent of job - seekers in a particular labor market . There may be more workers with a particular than there are jobs available using that . There may be more workers in a particular than there are jobs available in that . Structural unemployment arises when there are more people jobs in a labor market than there are jobs at the current wage rate . The rate is the price of labor . The labor curve indicates that when the price of labor increases , employers are less willing and able to purchase labor . The labor curve indicates that when the price of labor increases , more workers are willing and able to sell their labor . Several factors can lead to a wage rate in of the equilibrium wage rate such as the minimum wage , labor unions , and efficiency wages . A minimum wage is a government - mandated on the price of labor . If the minimum wage is higher than the equilibrium wage rate , there will be a persistent surplus in the labor market , leading to unemployment . By bargaining collectively for all of a firm's workers , can often win higher wages from employers . Labor unions push the wage that workers receive above the equilibrium wage rate , leading to unemployment . Firms may choose to pay efficiency wages , which are wages set above the equilibrium wage rate as an for their workers to deliver better performance . The use of efficiency wages by firms leads to unemployment . 4 deviation fluctuates business normal Actual cycle fluctuates Natural normal difference plus Because some frictional unemployment is inevitable and because many economies also suffer from structural unemployment , a certain amount of unemployment is . Actual unemployment around the normal level . The natural rate of unemployment arises from the effects of frictional structural unemployment . The natural rate of unemployment is the unemployment rate around which the actual unemployment rate . Cyclical unemployment is the of the actual rate of unemployment from the natural rate . Cyclical unemployment is the between the actual and natural rates of unemployment . Cyclical unemployment arises from the . unemployment = frictional unemployment + structural unemployment unemployment = natural unemployment + cyclical unemploymen t 5 government decrease inexperienced search characteristics unskilled increase time increase decrease increase decrease decrease experienced increase Unions decrease institutions decrease increase policies job increase decrease increase policies The natural rate of unemployment rises and falls over . The natural rate of unemployment is affected by changes in the of the labor force , changes in labor market , and changes in policies . Because workers tend to stay in a given job longer than do ones , they have lower frictional unemployment . A large rise in the number of new workers can the natural rate of unemployment . A large fall in the number of new workers can the natural rate of unemployment . that negotiate wages above the equilibrium level can be a source of structural unemployment . A sharp rise in union membership can the natural rate of unemployment . A sharp fall in union membership can the natural rate of unemployment . Websites may reduce frictional unemployment by helping workers avoid a prolonged . Less information about job openings can the natural rate of unemployment . More information about job openings can the natural rate of unemployment . Technological change leads to a reduction in the demand for workers and an increase structural unemployment . An increase in the rate of technological change can the natural rate of unemployment . A decrease in the rate of technological change can the natural rate of unemployment . Government intended to help workers can have the undesirable effect of raising the frictional rate of unemployment or the structural rate of unemployment . An increase in the minimum wage can the natural rate of unemployment . A decrease in the minimum wage can the natural rate of unemployment . An increase in unemployment benefits can the natural rate of unemployment . A decrease in unemployment benefits can the natural rate of unemployment . Some government may reduce the frictional rate of unemployment or the structural rate of unemployment . A decrease in the number of job training programs can the natural rate of unemployment . An increase in the number of job training programs can the natural rate of unemployment .
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