III. Unemployment
     A 3 Types of Unemployment
            1. Frictional caused by labor market time lags.
                a. Workers are between employment because they have been fired, are changing careers, are seasonal workers, have been temporarily  laid off
                b. Short-term, inevitable, temporary, and is eliminated with time.
            2. Structural caused by changes in consumer demand and technology.
                a. Result is an oversupply of workers with a particular skill. 
                b. This unemployment is often concentrated in a particular area, associated with a particular industry, and is often permanent. 
                c. Increased economic activity will not decrease this type of unemployment as training and/or relocation are required.
                d. Happened in the 1970's and early 1980's as consumers decided to buy small foreign built cars and other products produced in the Rust
                    Belt. Now it is happening because NAFTA and foreign competition are causing industries 
            3. Cyclical
                a. Caused by a lack of total demand at the end of an economic expansion 
                 b. Temporary
                c. Video 8 min.
                d. Recession of the early 1990's was due to a drop in demand caused by a debt buildup in the 1980's by individuals, businesses, and the federal 
                    government. Apprehension caused by high structural unemployment  of both blue and white collar workers slowed the recovery.
                e. Recession of 2001 was caused by debt build up of individuals resulting from the long period of prosperity and the stock market bubble, excess
                   capital investment caused by Y2K and internet