An unemployment rate of zero cannot be expected since
A) there are some people who do not want to work.
B) there will always be discouraged workers.
C) some portion of the labor force will always be between jobs.
D) aggregate demand can never create enough job vacancies.

Question

Quizplus · Accepted Answer

Some portion of the labor force will always be between jobs, which means that there will always be some level of unemployment. While policies can be put in place to reduce unemployment, a rate of zero is not possible. Option A is true, but not the main reason why a zero unemployment rate is not possible. Option B is referring to a specific type of unemployment and does not fully explain why a zero rate is not possible. Option D is incorrect because aggregate demand can create job vacancies, but other factors such as automation or outsourcing can also lead to job losses.

An Unemployment Rate of Zero Cannot Be Expected Since