Which statement is FALSE?
A) Both frictional and structural unemployment can occur, even if unemployment is at its natural level.
B) Cyclical unemployment is unemployment in excess of the natural rate.
C) A new college graduate looking for that first professional job may be frictionally unemployed.
D) Efficiency wages may cause frictional unemployment.

Question

Quizplus · Accepted Answer

Efficiency wages are designed to reduce turnover and increase productivity, which would typically reduce frictional unemployment.

Which Statement Is FALSE