Statement I: People who have looked for a job six months ago but are not looking now (and are not working)are counted as discouraged workers,and therefore are officially unemployed.
Statement II: Because of imperfect information in the labor market,there will always be some frictional unemployment.

Question

Quizplus · Accepted Answer

Statement I is false because discouraged workers, who have stopped looking for work, are not counted as officially unemployed. Statement II is true as frictional unemployment is a result of the time and information needed to match available jobs with job seekers.

Statement I: People Who Have Looked for a Job Six