Sectoral changes in demand a. and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment. b. create structural unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment. c. create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. d. and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.

create frictional unemployment, while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment. (C)

Explanation:

Frictional unemployment also called search unemployment is the time that is spent between jobs when a worker is looking for a job. This can be as a result of sectoral changes in demand.

Structural unemployment is caused by a mismatch between skills that an employee has to offer and the skills that is required of the employees by their employers. Structural unemployment is as a result of economic development and technological changes. This will make firms pay above the equilibrium wages to attract better employees.

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