Question

which of the following is true of frictional unemployment? a. frictional unemployment is temporary in nature. b. frictional unemployment occurs during an economic downturn as employers lay off employees and hire them back once the demand for products and services increase. c. frictional unemployment is when an industry closes and no longer needs certain types of employees. d. frictional unemployment occurs when employers only have need for employees during certain times of the year. e. frictional unemployment occurs when an employee is still working for a company but looking for a new job.

Explanation:

To determine the correct statement about frictional unemployment, we analyze each option:

• Option A: Frictional unemployment arises from workers transitioning between jobs (e.g., new entrants, job seekers). It is temporary as workers find new positions.
• Option B: Describes cyclical unemployment (due to economic downturns).
• Option C: Describes structural unemployment (due to industry changes/skill mismatches).
• Option D: Describes seasonal unemployment (due to seasonal demand).
• Option E: Frictional unemployment involves job search, not remaining employed while searching (that's not a standard unemployment concept).

So, only Option A correctly defines frictional unemployment as temporary.

Answer:

A. Frictional unemployment is temporary in nature.