If a worker becomes unemployed because of an increase in the minimum wage, that worker is:
A) frictionally unemployed.
B) structurally unemployed.
C) cyclically unemployed.
D) engaged in a job search.

Question

Quizplus · Accepted Answer

If a worker becomes unemployed because of an increase in the minimum wage, that worker is considered structurally unemployed because it is the result of a change in the structure of the labor market. This is because employers may choose to cut jobs or reduce hours in response to the increased cost of labor due to the minimum wage increase.

If a Worker Becomes Unemployed Because of an Increase in the Minimum