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Macroeconomics

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Distinguishing Frictional, Structural and Cyclical Unemployment

MACRO-FHENAU

Five years ago Jason completing a degree in Finance and moved back to his rural home town. He was able to get a job in his field but considers himself underemployed. As a result, he quit his job and moved to New York City. He has been living off of his saving and spends most of his time searching for a job on Wall Street.

Which of the following categories correctly characterizes the employment status of Jason?

A

He is a discouraged worker so she is not included in the labor force.

B

He is considered frictionally unemployed and included in the labor force.

C

He is considered structurally unemployed and included in the labor force.

D

He is considered cyclically unemployed and included in the labor force.