Economics · Macroeconomics - Unemployment Types

Frictional unemployment exists primarily when:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Potential GDP exceeds real GDP
2There is a fall in aggregate demand
3Workers are temporarily transitioning between jobs or seeking new employment✓
4Workers suffer from structural skill deficiencies

Correct answer

Workers are temporarily transitioning between jobs or seeking new employment

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Frictional unemployment exists primarily when:

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