People who are unemployed because wages are,for some reason,set above the level that brings labor supply and demand into equilibrium are best classified as
A)cyclically unemployed.
B)structurally unemployed.
C)frictionally unemployed.
D)discouraged workers.

Question

Quizplus · Accepted Answer

Structurally unemployed individuals are those who are no longer in demand due to changes in the structure of an industry or the economy as a whole, such as technological advancements or a shift in consumer preferences. If wages are set above the equilibrium level and there is an excess supply of labor, employers will be less likely to hire workers, leading to structural unemployment. This is different from cyclical unemployment, which results from fluctuations in the business cycle, and frictional unemployment, which arises from the time it takes for workers to find new jobs. Discouraged workers are those who have stopped actively seeking employment but are still counted as unemployed.

People Who Are Unemployed Because Wages Are,for Some Reason,set Above