Frictional unemployment increases when
A) real GDP decreases and the unemployment rate rises.
B) discouraged workers drop out of the work force.
C) the number of workers who quit one job to find another increases.
D) workers are replaced by machines and the unemployed workers do not have the skills to perform new jobs.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the unemployment that arises from workers who are between jobs or searching for new jobs. Therefore, when the number of workers who quit one job to find another increases, frictional unemployment also increases. Option A refers to cyclical unemployment, B refers to discouraged workers, and D refers to structural unemployment.

Frictional Unemployment Increases When