Fill in the blanks.

1. Reason for unemployment: _____________________________
Type of uneployment: very low employment

2. Reason for unemployment: a healthy economy that is working properly
Type of unemployment: _____________________________

1) I would go with cyclical unemployment

2) I would go with frictional unemployment

1. Reason for unemployment: very low employment

Type of unemployment: Structural unemployment

To understand the reason for unemployment being very low employment, we need to grasp the concept of structural unemployment. Structural unemployment occurs when there is a mismatch between the skills and qualifications of job seekers and the available job openings. So, in this case, the reason for unemployment being very low employment could be attributed to a lack of job opportunities that align with the skills and qualifications of the workforce.

To confirm this, you can gather data or statistics related to the job market. Look for indicators like the number of job vacancies, the number of job seekers, and rates of unemployment. Analyzing this information will help you determine if there is a significant gap between the demand and supply of jobs, leading to structural unemployment and ultimately causing very low employment.

2. Reason for unemployment: a healthy economy that is working properly
Type of unemployment: Natural unemployment

In the second scenario, where unemployment is attributed to a healthy economy that is functioning well, the type of unemployment is known as natural unemployment. Natural unemployment is the level of unemployment that exists even when the economy is operating at its potential output. It represents the presence of frictional unemployment and structural unemployment, which are considered normal in a dynamic economy.

Frictional unemployment occurs when individuals are in the process of transitioning between jobs, searching for new opportunities, or entering the workforce for the first time. It is usually temporary and a result of natural turnover in the labor market. Structural unemployment, as mentioned earlier, arises from a mismatch between the skills and qualifications of job seekers and the available job openings.

To confirm this reasoning, you can observe various economic indicators such as the overall unemployment rate, the labor force participation rate, and the job turnover rate. These metrics will provide insight into the dynamics of the labor market, helping you identify the presence of frictional and structural unemployment in a healthy, functioning economy.