If there were no frictional unemployment the economy would grow faster.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the short-term unemployment that occurs as people transition between jobs. It is a natural part of the labor market and cannot be completely eliminated. However, reducing frictional unemployment through programs such as job training and education can lead to a more efficient allocation of labor resources, which in turn can contribute to faster economic growth.

If There Were No Frictional Unemployment the Economy Would Grow