Question: After the Berlin Wall fell and the Soviet Union split into several countries, the defense industry in the United States underwent a serious decline as part of the so called peace dividend. Many high-skilled engineers and other workers became unemployed as the industry retrenched. For many, their skills were so specialized that they were unable to find new jobs at their old salaries. Were these people frictionally, structurally, or cyclically unemployed? What policies might the government implement to reduce the impact of this type of unemployment?