Which of the following statements is true of the unemployment rate in an economy?

Question

Quizplus · Accepted Answer

The rate of unemployment is positive in any well-functioning economy due to factors such as job turnover, structural changes, and frictional unemployment. During periods of economic expansion, the unemployment rate tends to decrease, while during recessions or periods of contraction, the unemployment rate tends to increase. However, it is rare for the unemployment rate to reach 0 percent in any developed nation due to factors such as seasonal variations, structural changes, and frictional unemployment.

Which of the Following Statements Is True of the Unemployment