Sam is unemployed if
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Sam’s utility function is U (x, y) = 2x + y. Sam has $200 to spend. The price of x is $4. Sam currently doesn’t consume any y. Sam has received an invitation to join a club devoted to the consumption of y. If he joins the club, Sam can get a discount on the purchase of y. If he belonged to the club, he could buy y for $1 a unit. How much is the most Sam would be willing to pay to join this club?
Indicate whether each of the following people is frictionally unemployed, structurally unemployed, seasonally unemployed, cyclically unemployed or not officially unemployed.
A. A woman with good job skills who cannot find a job due to a sluggish economy.B. A poorly educated former telephone operator, replaced by a machine, looking for work.
What are the differences between structural, frictional, and cyclical unemployment? What advice would you give someone who is structurally unemployed? Frictionally unemployed? Cyclically unemployed?