Which of the following types of unemployment is likely to exist in an economy that is at its potential output level?
A) cyclical unemployment
B) structural unemployment
C) frictional, cyclical, and seasonal unemployment
D) frictional, structural, and seasonal unemployment
E) seasonal unemployment

Question

Quizplus · Accepted Answer

At an economy's potential output level, cyclical unemployment (associated with economic downturns) is typically absent. However, frictional unemployment (short-term unemployment as people move between jobs), structural unemployment (due to mismatches between workers' skills and job requirements), and seasonal unemployment (related to seasonal variations in demand) can still exist.

Which of the Following Types of Unemployment Is Likely to Exist