George recently graduated from college with a Master's Degree in Basket Weaving. During the few months he spends searching for a stable basket weaving job, he is experiencing:

• A. Structural unemployment
• B. Frictional unemployment
• C. Natural Unemployment
• D. Cyclical Unemployment

Answer: (B)

Verified step by step guidance

1. Understand the different types of unemployment: Frictional, Structural, Cyclical, and Natural Unemployment.
2. Frictional Unemployment occurs when individuals are temporarily between jobs or are searching for new jobs that better match their skills.
3. Structural Unemployment arises from a mismatch between the skills workers possess and the skills needed by employers, often due to technological changes or shifts in the economy.
4. Cyclical Unemployment is related to the business cycle, where unemployment rises during economic downturns and falls when the economy improves.
5. Natural Unemployment is the sum of frictional and structural unemployment, representing the unemployment rate when the economy is at full employment.