Suppose the world price of cotton rises. The demand for labor among cotton-producing firms in Texas will (increase or decrease). The demand for labor among textile-producing firms in South Carolina for which cotton is an input will (increase or decrease). The unemployment resulting from such sectoral shifts in the economy is best described as (structural, seasonal, frictional or cyclical).
Which of the following polices would reduce the natural rate of unemployment in the economy?
A. Taxing the price of placing a resume or posting a job opening on a job search website.
B. An improvement to a widely used job-search website that allows it to match workers to find vacancies more effectively.
C. Establishing government employment agencies to connect unemployed workers to job vacancies.