The normal turnover of workers and the usual time it takes to find a satisfactory job causes ________ unemployment to persist even at potential GDP.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the temporary unemployment that arises from the normal turnover of workers and the time it takes to find a new job. This type of unemployment is considered to be natural and inevitable in a dynamic economy, even when the economy is operating at potential GDP. Therefore, option C is the correct answer.

The Normal Turnover of Workers and the Usual Time It