Unions contribute to a. cyclical unemployment. b. frictional unemployment. c. structural unemployment. d. seasonal unemployment.

The correct answer is d. c. structural unemployment.

Explanation:

Structural unemployment is due to the fact that the number of existing jobs is insufficient to give employment to everyone who wants a worker (active population).

When a union raises wages above the equilibrium level, it increases the supply of employment and reduces demand. This generates unemployment.

• Internal workers benefit from  high salaries earned in negotiation  collective

• External workers have difficulties in  find a job or have to accept a job in a non-union company.

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