H.Ross Pearlmutter is a crackerjack salesperson.He could probably sell anything to anyone.The company he works for goes out of business.Until he finds a new position,Mr.Pearlmutter is _____ unemployed.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to temporary unemployment that occurs while a person is searching for a new job or transitioning between jobs. In this scenario, Mr. Pearlmutter is unemployed because his previous company went out of business, but he is actively searching for a new position. Therefore, his unemployment is best categorized as frictional. Option B) Structurally refers to unemployment caused by shifts in the economy, such as changes in technology, and is not applicable in this scenario. Option C) Cyclical unemployment is caused by economic downturns and fluctuations in the business cycle, which also does not apply here. Option D) Psychological unemployment is not a recognized type of unemployment.

HRoss Pearlmutter Is a Crackerjack Salesperson