Match the definition with the correct type of unemployment. Not all of the terms will be used. 1.Unemployment caused by recessions 2.Unemployment that normally occurs due to turnover as workers switch jobs 3.The unemployment rate that exists when the economy is operating at potential a. frictional unemployment b. natural unemployment rate c. cyclical unemployment d. puzzle unemployment rate e. structural unemployment

The answer is:

1. Cyclical Unemployment

2. Frictional Unemployment

3. Natural Unemployment

Explanation:

1. Unemployment caused by recessions - cyclical unemployment. It is caused by reduction in total spending, low activities in the economy. Coronavirus pandemic is already causing cyclical unemployment.

2. Unemployment that normally occurs due to turnover as workers switch jobs - frictional unemployment.

This happens when a worker leaves a job to search for another. The unemployment between the time gap is frictional unemployment.

3. The unemployment rate that exists when the economy is operating at potential - Natural Unemployment.

Unemployment caused by replacement of obsolete technology or lack of required skills are called natural employment.

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