Which of the following statements is NOT true?
A) Frictional unemployment is caused when workers and employers spend time searching for a good match.
B) Structural unemployment occurs because of a mismatch between the skills that workers have and the skills that employers seek.
C) Full employment is the level of employment that occurs when there is no structural unemployment.
D) The unemployment rate when there is full employment is called the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Full employment includes not only frictional but also structural unemployment, as it represents the level of employment achieved when there is no cyclical unemployment. Structural unemployment is considered even at full employment due to ongoing changes in the economy and labor market.

Which of the Following Statements Is NOT True