Current Economic AnalysisEconomy Define unemployment? Give an example of the three types of unemployment. Which type of unemployment is most problematic and why? What kind of unemployment problems does the United States currently have and why? What is a possible solution to the unemployment problem(s)? Unemployment is a person's inability to find work. (Schiller, 2006) This means that an unemployed person is a person capable of working and who is actively looking for work but cannot find employment, which means that this person is an active member of the workforce looking for job opportunities but I can't find one. This excludes full-time students and housewives who are not actively looking for work. Unemployment can be divided into three types known as frictional, structural and cyclical (Schiller, 2006). The first form of unemployment is frictional unemployment. It arises because workers looking for better opportunities do not find them immediately. While they are looking for work they are counted as unemployed. The same concept also applies to recent graduates looking for work. Example: A website project for a company is finished and the web designer is looking for other companies to design websites for. Structural unemployment is created during major changes in an economic environment. system. Structural means that people don't have the skills needed to find work in today's market. Example: the shift from an industrial economy to a technological economy where so many people lack the computer and communication skills needed to be employable in the new market. Cyclical unemployment is usually directly tied to the state of the economy. It occurs when there is not enough demand for labor. Elsewhere...... half of the document.......45.104/search?q=cache:90dc529f3bcJ:research.stlouisfed.org/publications/mt/20080501/cover.pdf+monetary+tools&hl=en&ct= clnk&cd=6&gl=us&client=firefox-aSahadi, J. (2008, January 7). How Bush can revive the economy. Retrieved September 5, 2008, from cnn: http://money.cnn.com/2008/01/04/news/economy/bush_economic_stimulus_options/index.htmSchiller, B. R. (2006). Unemployment. In BR Schiller, The essentials of economics (p. 233). Washington: McGraw-Hill. Sherman, H. (2008, February 7). The high price of easy money. Retrieved September 5, 2008, from Market watch: http://www.marketwatch.com/news/story/us-fiscal-policy-laying-groundwork/story.aspx?guid=%7B8EA064D0-793E-4D25-9D21-230E553A50CE % 7D&dist=morenewsSidney L. Jones, M. (2008). Inflation and deflation. Retrieved September 3, 2008, from http://encarta.msn.com/encyclopedia_761553744_2/Inflation_and_Deflation.html