AP Macroeconomics Question 287: Answer and Explanation
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6. You are working at a supermarket bagging groceries, but you are unhappy about your wage, so you quit and begin looking for a new job at a competing grocery store. What type of unemployment is this?
- A. Cyclical
- B. Structural
- C. Seasonal
- D. Frictional
- E. Discouraged
Correct Answer: D
D —Frictional unemployment occurs when a person is in between jobs. This person has not been laid off due to a structural change in the demand for skills, or because of a cyclical economic downturn, or because of a new season. A low wage might be discouraging; a discouraged worker is a worker who has been unemployed for so long that he or she has ceased the search for work.