'Frictional unemployment' would increase when:
A)there is a fall in aggregate demand.
B)workers are replaced by machines and the workers do not have the skills necessary to perform new jobs.
C)discouraged workers leave the labour force.
D)the number of individuals who quit their job to find another job increases.

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when individuals voluntarily leave their job to find a new one. This type of unemployment is often seen as a healthy sign of a dynamic labor market where workers are seeking better opportunities. Choices A, B, and C describe situations related to cyclical, structural, and discouraged workers, respectively, which are different from frictional unemployment.

'Frictional Unemployment' Would Increase When