ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Frictional unemployment examples People who leave their current job to find a better one. People who are entering the workforce for the first time. People who are reentering the workforce.

Detailed explanation-2: -Slumping sales lead to the cashier being laid off. An individual refuses to work for minimum wage. A high school graduate lacks the skills necessary for a particular job. Workers are laid off when the local manufacturing plant closes because the product made there isn’t selling during a recession.

Detailed explanation-3: -Natural unemployment is the combination of frictional and structural unemployment. It refers to the lowest unemployment level a healthy economy can sustain without causing inflation.

Detailed explanation-4: -An example of cyclical unemployment is when construction workers were laid off during the Great Recession following the financial crisis of 2008. With the housing market struggling, construction of new homes fell dramatically, leading to a rise in cyclical unemployment for construction workers.