Frictional Unemployment Is

question 215

Multiple Choice

Frictional unemployment is:

• A) short-term unemployment associated with people who are switching jobs.
• B) long-term unemployment caused by changes in consumer demand or technology.
• C) the unemployment that arises due to downturns in the business cycle.
• D) equivalent to the natural rate of unemployment.

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Definitions:

Error Management Theory

A theory suggesting that when making decisions under uncertainty, people are biased toward making the less costly error.

Action Identification Theory

A theory suggesting that how individuals identify and think about their actions affects how they perform and experience those actions.

Temporal Discounting

The bias towards valuing rewards received right away more than those in the future.

Learned Helplessness

A state where an individual experiences feelings of inability to control their circumstances, stemming from traumatic experiences or ongoing unsuccessful attempts.