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

Question

Quizplus · Accepted Answer

Frictional unemployment is a natural part of the job market, occurring when workers voluntarily leave their jobs to find better ones or when new workers are entering the workforce. It is not indicative of economic recession but rather of a dynamic and growing economy where there is movement within the job market.

Suppose the Country of Tiny Town Experienced Frictional Unemployment