Econ 110 Exam #3 Quizzes
A.) Cyclical unemployment is the unemployment that occurs as an economy goes through contractionary periods of the business cycle.
B.) Frictional unemployment occurs when people switch jobs or when firms go out of business, causing people to be unemployed for a short duration.
C.) Structural unemployment refers to people being unemployed because they don't possess the skills firms are looking for.
D.) The natural rate of unemployment includes frictional unemployment and a small component of cyclical unemployment.
E.) All of the above statements are true.