Economics 9708 · AS & A Level · Price stability and inflation

Price stability and inflation — practice question

Why do some economists argue that frictional unemployment may create positive benefits?

  • AA short spell of frictional unemployment may lead workers to become discouraged.
  • BFrictional unemployment allows time for retraining in newly emerging skills.
  • CJob search during frictional unemployment may lead to a better match of workers and jobs.
  • DThe psychological effects of frictional unemployment are less than the economic effects.

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