Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

Two members of the Hernandez family have recently lost their jobs. Mariana has lost her job at the local factory, which has shut because of competition from cheaper imports. Alfonso has lost his job as a shop assistant because sales have fallen during a recession. How would an economist categorise these job losses?

  • AMariana: frictional unemployment; Alfonso: seasonal unemployment
  • BMariana: regional unemployment; Alfonso: frictional unemployment
  • CMariana: structural unemployment; Alfonso: cyclical unemployment
  • DMariana: technological unemployment; Alfonso: structural unemployment

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