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It Is Said That Some Frictional Unemployment Is Inevitable

question 8

Essay

It is said that some frictional unemployment is inevitable. What is the reason that some frictional unemployment is inevitable?


Definitions:

Overfunded

A situation where a pension plan's assets exceed its liabilities, indicating that there are more than enough funds to meet future obligations.

Underfunded

A term referring to insufficient funding to meet future obligations or commitments.

Funding Requirements

The total amount of capital needed to support a business's operations, projects, or to fulfill other financial commitments.

Actuarial Assumptions

The hypotheses about demographic, financial, and other variables that actuaries use to calculate the liabilities and expenses of insurance and pension plans.

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