Rictional unemployment is

A. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.

B. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

C. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.

D. not inevitable; rather, it can be reduced to zero by well-designed public policies.

Question

Business

Emma Leblanc

24 March, 07:01

Rictional unemployment is

A. not inevitable; rather, it could be reduced to zero if by the elimination of unemployment insurance.

B. inevitable, because in some industries, wages are always set above the level that brings supply and demand into equilibrium.

C. inevitable, because at any given time, jobs are being created in some firms and destroyed in other firms.

D. not inevitable; rather, it can be reduced to zero by well-designed public policies.

+4

Answers (1)

Know the Answer?

Veronica Leach · Answer 1

The correct answer is option C.

Explanation:

Frictional unemployment is a type of involuntary unemployment which is caused because of movements between jobs. Unlike cyclical unemployment, it is not caused by business cycles.

Frictional unemployment is caused for a short term and is inevitable. At any given time, jobs are being created while in other firms jobs are being destroyed. So when a worker is unemployed from a job and is looking for another or is about to join another he/she is considered frictionally unemployed.