Use the information below to answer the following questions.
Fact 21.2.3
Oregon's 5.6 percent unemployment rate hovers close the national average of 5.5 percent. A few years ago, Oregon had one of the highest unemployment rates in the nation. To avoid rising unemployment, Oregon Governor Kulongoski introduced a plan that provides public schools and universities with enough state funds to meet growing demand for skilled workers. Also Kulongoski wants to use state and federal money for bridges, roads, and buildings to stimulate more construction jobs.
Source: The Oregonian, July 8, 2008
-Consider Fact 21.2.3. The main type of unemployment that Governor Kulongoski is using policies to avoid is
A)structural and natural.
B)cyclical only.
C)natural only.
D)frictional and structural.
E)cyclical and natural.

Question

Quizplus · Accepted Answer

Governor Kulongoski's plan is focused on providing funding to schools and universities to meet the demand for skilled workers and to use money for construction to create more jobs. This indicates that the main type of unemployment he is addressing is frictional and structural, which are caused by a mismatch between the supply and demand of labor for specific industries or skills. Cyclical unemployment, on the other hand, is caused by economic downturns and is more difficult to address through policy measures. Natural unemployment refers to the unemployment rate that occurs when the labor market is in equilibrium and there is no cyclical unemployment, which is not the focus of the Governor's plan.

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