Sectoral shifts, frictional unemployment, and job searches
Suppose the world price of steel falls substantially. The demand for labour among steel-producing firms in Northern Ontario willdecrease . The demand for labour among automobile-producing firms in Southern Ontario, for which steel is an input, willincrease . The temporary unemployment resulting from such sectoral shifts in the economy is best described asfrictional unemployment.
Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply.
Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government
Improving a widely used job search website so that it matches workers to job vacancies more effectively