Suppose the Country of Tiny Town Experienced Frictional Unemployment

question 74

Multiple Choice

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

• A) signal that the number of discouraged workers is growing.
• B) be considered a natural occurrence in a growing economy.
• C) definitely signal that the country is in a recession.
• D) signal that there are more job leavers than job losers.

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Definitions:

OASDI

Stands for Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retired individuals, the disabled, and survivors of deceased workers.

Double Time

A rate of payment that is twice the regular wages, often paid for working on holidays or outside of normal working hours.

Time and a Half

An overtime pay rate, typically 1.5 times the employee's regular hourly wage, paid for hours worked beyond the standard workweek.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. federal payroll tax funding Social Security and Medicare benefits.