Which of the following statements is true of unemployment?
A)Cyclical unemployment decreases during recessions and increases during expansions.
B)Some unemployment exists even when the economy is healthy and growing.
C)Unemployment and inflation are not related.
D)People who are willing and able to work but have given up the search for a job are considered unemployed.
E)Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

Question

Quizplus · Accepted Answer

Some level of unemployment, called natural or frictional unemployment, exists even when the economy is healthy and growing due to factors such as skill mismatches and people voluntarily leaving their jobs to search for better opportunities.

Which of the Following Statements Is True of Unemployment