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

Question

Quizplus · Accepted Answer

Frictional unemployment is a type of unemployment that occurs when individuals are temporarily between jobs, either because they are searching for a new job or because they have recently left their previous job. It is considered a natural occurrence in a growing economy as workers are constantly entering and leaving the labor force. Therefore, choice B is the correct answer.

Suppose the Country of Tiny Town Experiences Frictional Unemployment