Unemployment that is the result of deregulation, corporate downsizing, and the closure of military bases is best categorized as frictional unemployment. Select one: a. True b. False

That statement is false. Unemployment resulting from deregulation, corporate downsizing, and the closure of military bases is more accurately categorized as structural unemployment rather than frictional unemployment.

Frictional unemployment refers to temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce for the first time. It is often considered a natural and short-term type of unemployment caused by factors such as job search and matching processes.

On the other hand, structural unemployment arises from mismatches between the skills workers possess and the skills demanded by available job openings. It occurs due to changes in the structure of an economy, such as technological advancements, industry shifts, or changes in market demand, which make certain skills obsolete or less in demand, leading to persistent unemployment for some workers. Factors like deregulation, corporate downsizing, and base closures often contribute to structural unemployment by disrupting industries and causing shifts in labor demand and supply.