Suppose the country of Tiny Town experiences frictional unemployment.This frictional unemployment would
A)decrease the output gap.
B)signal that the country is in a recession.
C)increase structural unemployment.
D)signal the number of discouraged searchers is growing.
E)be considered a natural occurrence in a growing economy.

Question

Quizplus · Accepted Answer

Frictional unemployment is a type of unemployment that occurs when workers are transitioning between jobs, or entering the workforce for the first time. This type of unemployment is considered a natural occurrence in a growing economy as workers are always seeking better opportunities.

Suppose the Country of Tiny Town Experiences Frictional Unemployment