Frictional unemployment is
A)the unemployment that exists even at the full-employment level of output
B)unemployment that results from an increase in the GDP gap
C)unemployment that occurs as a result of a supply shock
D)the result of discouraged workers leaving the work force
E)mostly the result of a high minimum wage rate

Question

Quizplus · Accepted Answer

Frictional unemployment is the type of unemployment that happens naturally in any economy when workers are in the process of changing jobs or entering the workforce. It is the unemployment that exists even at the full-employment level of output, and is caused by various factors such as information asymmetry, frictional costs of moving between jobs, and seasonal or regional mismatches.

Frictional Unemployment Is