Frictional unemployment occurs when the economy's growth loses momentum due to monetary policy changes, foreign competition or other external factors and employers begin to reduce their work force.

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when workers are between jobs, either because they are searching for a new job by choice or are transitioning from one job to another, not due to the economy's growth losing momentum.

Frictional Unemployment Occurs When the Economy's Growth Loses Momentum Due