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      Question

      The Lorenz curve shifts away from the line of equality.

      Which type of unemployment is most likely to increase simultaneously?
      A Frictional unemployment Correct Answer Incorrect Answer
      B Structural unemployment Correct Answer Incorrect Answer
      C Cyclical unemployment Correct Answer Incorrect Answer
      D Seasonal unemployment Correct Answer Incorrect Answer
      E Voluntary unemployment Correct Answer Incorrect Answer

      Solution

      Rising inequality (Lorenz curve away) often coincides with structural unemployment—low-skilled workers cannot access high-paying jobs, widening the income gap.

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