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WAEC Economics 2014 Question 37

Question 37

Labour Market

Which of the following types of unemployment results from changes in the pattern of aggregate demand?

  1. A.Technological unemployment
  2. B.Structural unemployment
  3. C.Frictional unemployment
  4. D.Seasonal unemployment.
Show the answer and explanation

Answer: B (Structural unemployment)

Explanation

When demand shifts permanently away from some industries, their workers become structurally unemployed.