When the demand for labor is falling and employers have committed to high wages, _____ unemployment will result.
A) frictional
B) cyclical
C) permanent
D) structural

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the workforce and the demands of the labor market. When the demand for labor is falling and employers have committed to high wages, workers may be reluctant to accept lower-paying jobs, leading to structural unemployment.

When the Demand for Labor Is Falling and Employers Have