A ﬁrm reduces hiring in the next quarter following an agreement with the union to increase prices. This leads to structural unemployment.

Name: A ﬁrm reduces hiring in the next quarter following an agreement with the union to increase prices. This leads to structural unemployment.
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Question

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Structural unemployment occurs when there is a mismatch between the skills workers have and the skills needed by employers, not directly due to changes in hiring practices following price adjustments.

A ﬁRm Reduces Hiring in the Next Quarter Following an Agreement