Asked by
jacob mittelstadt
on Nov 11, 2024
Verified
When the economy produces its potential output,_____ is zero.
A) frictional unemployment
B) cyclical unemployment
C) seasonal unemployment
D) structural unemployment
E) disguised unemployment
Cyclical Unemployment
This type of unemployment occurs due to economic downturns or recessions, reflecting a lack of demand for goods and services in the market.
Frictional Unemployment
Unemployment that occurs when workers are between jobs or are entering the workforce for the first time; it is often seen as a natural and necessary part of a healthy economy.
Seasonal Unemployment
This refers to the phenomenon where individuals temporarily lose their jobs due to changes in the season, common in industries like agriculture or tourism.
- Ascertain the various forms of unemployment manifesting at a point where an economy reaches its potential output level.
Verified Answer
MC
Learning Objectives
- Ascertain the various forms of unemployment manifesting at a point where an economy reaches its potential output level.