When the demand for labour 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 When the demand for labor is falling and employers have committed to high wages, workers with outdated skills may find it difficult to find new jobs, leading to structural unemployment.

When the Demand for Labour Is Falling and Employers Have