Suppose the country of Tiny Town experiences frictional unemployment.This frictional unemployment would
A)signal that the country is in a recession.
B)be considered a natural occurrence in a growing economy.
C)signal the number of discouraged workers is growing.
D)increase structural unemployment.
E)decrease the output gap.

Question

Quizplus · Accepted Answer

Frictional unemployment is considered a natural part of a growing economy as it occurs when workers are between jobs and searching for new ones. It is not typically an indicator of a recession or an increase in structural unemployment. Discouraged workers are not necessarily related to frictional unemployment. The output gap may be affected by a variety of factors, but frictional unemployment alone is unlikely to have a significant impact on it.

Suppose the Country of Tiny Town Experiences Frictional Unemployment