Which of the following statements about unemployment is true?
A)There is only one kind of unemployment.
B)Some unemployment exists even when the economy is healthy and growing.
C)Unemployment and inflation are not related.
D)People who are willing and able to work but have given up the search for a job are considered unemployed.
E)Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

Question

Quizplus · Accepted Answer

Some unemployment exists even when the economy is healthy and growing. This is known as "natural" or "frictional" unemployment, which occurs as workers transition between jobs or when there is a mismatch between the skills of job seekers and the needs of employers. Even with a healthy economy, there will always be some level of natural unemployment.

Answer: D 
 People who are willing and able to work but have given up the search for a job are considered unemployed. This is known as "discouraged" unemployment, and it is a type of unemployment that is not included in the official unemployment rate.

The other choices are incorrect:
A) There are multiple kinds of unemployment, not just one. 
C) Unemployment and inflation are often related, as there is typically an inverse relationship between the two. 
E) Voluntary unemployment does not refer to people pretending to look for jobs, but instead to people who choose not to work (such as students or stay-at-home parents).

Which of the Following Statements About Unemployment Is True