Question

Jeb recently quit his job at the farm because he is looking for a job in the big city. Jeb is:

		Frictionally unemployed.
		Structurally unemployed.
		A discouraged worker and is part of the unemployment statistic.
		Not part of the labor force and does not contribute to the unemployment rate.

Which of the following government policies or programs would be most appropriate to offset structural unemployment?

		Those which stimulate economic growth, such as fiscal and monetary policies.
		More job training and job-placement services.
		Providing additional fiscal stimulus.
		Providing additional health services to counter the effects of unemployment.

Ceteris paribus, which of the following will cause the aggregate-demand curve to shift to the right (increase)?

		A decrease in consumer and business confidence because of a terrorist attack.
		An increase in the interest rate.
		A decrease in consumer and business taxes.
		All of the above.

Answer 1

The correct answer is 'Option A'.

Frictional unemployment is the short period of unemployment which occurs when a worker switches to a new job. Since Jeb is looking for a new job, he is frictionally unemployed.

The correct answer is 'Option B'.

Structural unemployment occurs due to the reorganization of a company due to changes in supply or demand or any technological change. If the government provides more job training and job-placement services then the workers will remain up-to-date and any change in technology or any other factor may not lead to the loss of job of workers.