Question

Which of the following represents frictional unemployment? i. The demand for refrigerators falls when the economy enters a recession and refrigerator manufacturers lay off some of their workers. ii. General Motors decides to close its U.S. factories and relocate its car manufacturing division to Mexico. iii. After quitting your job in Ohio to be closer to your family in California, you are now looking for a new job. iv. Carla’s boss recently fired her for doing a poor job and she hasn't yet found a new one. Group of answer choices

Answer 1

iii and iv are correct!

Step-by-step explanation:

Frictional unemployment happens in a stabilized economy. This occurs when workers quit their job for some reason, and also when new workers enter jobs. This is the situation that occurs in options iii and iv. In alternative i there is an example of cyclical unemployment caused by changes in the economy. In alternative ii there is an example of structural unemployment, which is unemployment due to longer lasting factors such as government policies.