Frictional Unemployment Is Thought to Explain Relatively

question 6

Multiple Choice

Frictional unemployment is thought to explain relatively

• A)short spells of unemployment, as is structural unemployment.
• B)long spells of unemployment, as is structural unemployment.
• C)short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
• D)long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.

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Definitions:

Market System

An economic system where prices are determined by the interaction of supply and demand, guiding the allocation of resources and goods.

Inflation

A rise in the general level of prices in an economy; an increase in an economy’s price level.

Legal Tender

Any form of currency that by law must be accepted by creditors (lenders) for the settlement of a financial debt; a nation’s official currency is legal tender within its own borders.

Political Candidates

Individuals who run for office in governmental elections, seeking to hold a position within a government body.