Question

Match the definition with the correct type of unemployment. Not all items will be used.

(1) Unemployment caused by recessions.
(2) Unemployment that normally occur due to turnover as workers switch jobs.
(3) The unemployment that still exists when the economy is operating at its full potential.

(A) Fictional Unemployment
(B) Frictional Unemployment
(C) Cyclical Unemployment
(D) Natural Unemployment
(E) Efficient Unemployment

Answer 1

For (1) the answer is (C)

For (2) the answer is (B)

For (3) the answer is (D)