People who are unemployed because wages are, for some reason, set above the level that brings labor supply and demand into equilibrium are best classified as a. structurally unemployed. b. frictionally unemployed. c. discouraged workers. d. cyclically unemployed.

A. Structurally unemployed.

Explanation:

The natural rate of unemployment includes both unemployment created by job search and unemployment created by above equilibrium wages. When a union raises the wage above the equilibrium level it raises the quantity of labor supplied and reduces the quantity of labor demanded, resulting in unemployment. We know, structural unemployement are caused by mismatch between demand and supply of required skill or wages in the labor market, that´s why it is also called involuntary unemployment.

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