Assignment Instructions/ Description
EC2050 myeconlab Homework Questions
Despite some optimism about the seeds of recovery, the Congressional Budget Office (CBO) sees joblessness rising. The CBO sees unemployment peaking at 10.4% next year from an average of 9.3% this year, before it falls to 9.1% in 2011.Source: Fortune, August 25, 2009Before the recession began, the U.S. unemployment rate was about 6 percent. As a recession begins, firms quickly make layoffs. Is this rise in unemployment mostly a rise in frictional, structural, or cyclical unemployment?The resulting rise in unemployment is mostly a rise in ______ unemployment because _______.A. cyclical; it is related to the state of the economyYour answer is correct.B. frictional; in a recession, normal labor turnover increasesC. structural; international competition tends to rise when the United States enters a recessionD. structural; it is related to the state of the economyE. cyclical; any unemployment above average unemployment of 5.8 percent is cyclical
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