Which of the Following Statements About Frictional Unemployment Is Most

question 70

Multiple Choice

Which of the following statements about frictional unemployment is most accurate?

• A)The only way to reduce it is to shift the AD curve to the left.
• B)The only way to reduce it is to shift the AD curve to the right.
• C)Unemployed workers and the employers with suitable job vacancies have not yet found each other.
• D)It exists when only there are no jobs for the unemployed people in the economy.
• E)There is a mismatch between the needs of employers with job vacancies and the unemployed workers.

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Definitions:

Saving Rate

The proportion of disposable income that is not spent on consumption but reserved for future use or investment.

Living Standards

refer to the quality and quantity of goods and services available to individuals or societies, reflecting their economic prosperity and quality of life.

Financial System

The group of institutions in the economy that help to match one person’s saving with another person’s investment

Main Function

The primary or most important role or purpose that an entity or system is designed or intended to fulfill.