📚 Learning Guide
Full Employment Equilibrium
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Which type of unemployment occurs when workers are temporarily laid off due to seasonal work fluctuations, yet the economy is at full employment equilibrium?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

Frictional Unemployment

B

Structural Unemployment

C

Seasonal Unemployment

D

Cyclical Unemployment

Understanding the Answer

Let's break down why this is correct

Answer

The type of unemployment that happens when workers are temporarily laid off due to seasonal changes is called seasonal unemployment. This occurs when certain jobs are only available during specific times of the year, like summer jobs at a beach resort or holiday retail positions. Even though these workers are not employed during off-seasons, the overall economy is still considered to be at full employment equilibrium, meaning that most people who want to work can find jobs. For example, a ski resort may lay off staff in the spring when the snow melts, but these workers know they will be hired again when the next winter season starts. Seasonal unemployment is a normal part of the job market and reflects the natural rhythm of certain industries.

Detailed Explanation

Seasonal unemployment happens when jobs depend on the season. Other options are incorrect because Frictional unemployment is when people are between jobs; Structural unemployment occurs when skills do not match job needs.

Key Concepts

full employment
unemployment types
Topic

Full Employment Equilibrium

Difficulty

medium level question

Cognitive Level

understand

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