Frictional unemployment is reduced by ________ in the number of weeks one is eligible for unemployment compensation,and ________ in the price of gasoline.

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by workers transitioning between jobs, and can be reduced by improving job matching and information dissemination. However, unemployment compensation can prolong the job search process, leading to longer periods of frictional unemployment. Therefore, reducing the number of weeks one is eligible for unemployment compensation can reduce frictional unemployment. On the other hand, the price of gasoline has no direct effect on frictional unemployment, making option A and B incorrect.

Frictional Unemployment Is Reduced by ________ in the Number of Weeks