Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would
A) definitely signal that the country is in a recession.
B) signal that the number of discouraged workers is growing.
C) be considered a natural occurrence in a growing economy.
D) signal that there are more job leavers than job losers.

Question

Quizplus · Accepted Answer

Frictional unemployment is a type of unemployment that occurs when individuals are between jobs or searching for their first job. It is considered a natural occurrence in a growing economy as people are constantly looking for better job opportunities or careers. It does not necessarily signal a recession or indicate an increase in discouraged workers, and it is not about the balance between job leavers and job losers.

Suppose the Country of Tiny Town Experienced Frictional Unemployment