When an Individual Is Frictionally Unemployed,the Unemployment Arises from

question 100

Multiple Choice

When an individual is frictionally unemployed,the unemployment arises from

• A)a short-term elimination of jobs because of a slowdown in business activity.
• B)imperfect labour market information which requires individuals to search for appropriate employment.
• C)the permanent elimination of jobs because of a change in the structure of the economy.
• D)a reduction in the overall demand for labour's skills.

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Definitions:

Value of Money

The purchasing power of money, indicating how much goods or services one unit of money can buy.

Excess Supply

A market situation where the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Deflation

Deflation is a decrease in the general price level of goods and services in an economy over a period, indicating negative inflation.

Money Demand Curve

A graphical representation illustrating the relationship between the quantity of money demanded and the interest rate, showing how they vary inversely.