Which of the following is not an accurate description of the point at which the labor supply and labor demand curves meet?
A) The point at which the market for labor has cleared
B) The real wage at which the quantity of labor demanded is equal to the quantity of labor supplied
C) The point at which there is no frictional unemployment
D) The point at which there is no unemployment
E) The wage at which the number of workers firms want to hire is equal to the number of people who want jobs

Question

Quizplus · Accepted Answer

The point at which the labor supply and labor demand curves meet is not the point at which there is no frictional unemployment. Frictional unemployment is a type of unemployment that occurs when workers are temporarily unemployed while they are searching for a new job. This type of unemployment is always present in the economy, even when the labor market is in equilibrium.

Which of the Following Is Not an Accurate Description of the Point