Which of the following about unemployment is true?
A) When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present.
B) Some unemployment will be present even when a dynamic labor market is operating efficiently.
C) When full employment is present, the rate of unemployment will be zero.
D) When full employment is present, there will not be any frictional unemployment.
E) When full employment is present, it will be impossible to sustain the current rate of output in the future.

Question

Quizplus · Accepted Answer

Unemployment is a complex issue and there are various types of unemployment, such as frictional, structural, and cyclical unemployment. Even in a dynamic labor market, some people may be in between jobs or looking for better opportunities, leading to frictional unemployment. Therefore, some unemployment may still be present even when the labor market is operating efficiently. Full employment does not mean zero unemployment as frictional unemployment will still exist. Therefore, option B is the correct answer.

Which of the Following About Unemployment Is True