Sectoral shifts, frictional unemployment, and job searches Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will . The temporary unemployment resulting from such sectoral shifts in the economy is best described as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal?
a. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks
b. Extending the number of weeks for which unemployed workers are eligible for unemployment insurance benefits from the government Improving a widely used job-search website so that it matches workers to job vacancies more effectively
