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

The description given in the question suggests that the unemployment is not due to economic downturns or lack of job openings (cyclical or excess). Instead, it is attributed to the time taken for job search and employee turnover (frictional). Therefore, the best choice is C - Frictional.

The Normal Turnover of Workers and the Usual Time It