Suppose the world price of steel falls substantially. the demand for labor among steel-producing firms in pennsylvania willincrease . the demand for labor among automobile-producing firms in michigan, for which steel is an input, willincrease . the temporary unemployment resulting from such sectoral shifts in the economy is best described ascyclical unemployment.

If the world price of steel has fallen substantially, the likely outcome of this matter are the following;
- the labor demand in regards of the steel producing firms in Pennsylvania will likely decrease
- In regards with the labor among the auto-mobile producing firms in Michigan, as the steel they use is for input, it is likely that it will increase
- Whereas the temporary unemployment that results from sectoral shifts in the economy is described to be a frictional unemployment.