Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would
A) signal that the number of discouraged workers is growing.
B) be considered a natural occurrence in a growing economy.
C) definitely signal that the country is in a recession.
D) signal that there are more job leavers than job losers.

Question

Quizplus · Accepted Answer

Frictional unemployment is a natural occurrence in a growing economy where there are constantly new job opportunities and people transitioning between jobs. It is not necessarily a sign of a recession or that there are more job leavers than job losers. Additionally, it does not specifically indicate the growth of discouraged workers.

Suppose the Country of Tiny Town Experienced Frictional Unemployment