Question

4. Sectoral shifts, frictional unemployment, and job searches Suppose the world price of steel falls substantially. The demand for labor among steel-producing firms in Pennsylvania will . The demand for labor among automobile-producing firms in Michigan, for which steel is an input, will The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment The temporary the Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Taxing the price of placing a resume or posting a job opening on a job-search website U Establishing government-run employment agencies to connect unemployed workers to job vacancies Improving a widely used job-search website so that it matches workers to job vacancies more effectively

Answer 1

Suppose the world price of steel falls substantially. The demand for labor among steel producing firms in Pennsylvania will decrease, the demand for labor among automobiles producing firms in Michigan ,for which steel is an input , will increase. The temporary unemployment resulting from such sectoral shifts in economy is best described as frictional unemployment.

Suppose the government wants to reduce this type of unemployment i.e frictional , the policies that would help to achieve this goal is establishing government run employment agencies to connect unemployed workers to job vacancies , Improving a widely used job-search website so that it matches workers to job vacancies more effectively. Hence,option(B) and (C) are correct.