Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be
A)counted as still being employed.
B)included in the economy's "hidden employment."
C)counted as frictionally unemployed.
D)counted as cyclically unemployed.

Question

Quizplus · Accepted Answer

When Matt quits his job voluntarily to look for better employment opportunities, he becomes part of the group of people who are frictionally unemployed. Frictional unemployment occurs when people who are willing and able to work are temporarily in transition from one job to another. It is a natural and even necessary part of a dynamic economy as it allows workers to search for better jobs and companies to search for better-suited employees. Matt is not considered as still being employed (choice A) since he quit his job. He is also not part of the hidden employment (choice B) as he is actively looking for a job. Lastly, he is not cyclically unemployed (choice D) since this type of unemployment occurs due to fluctuations in the business cycle.

Suppose That Matt Quits a Job with the XYZ Corporation