Question
Macroeconomics Question on Inflation and unemployment
Among the following statements which one is CORRECT?
S1: Structural unemployment arises in between two jobs, the first job which an individual has quit in order to find the second job.
S2: Frictional unemployment arises due to the mismatch of vacancies and skills of the individual.
A
only S1
B
only S2
C
both S1 and S2
D
neither S1 nor S2
Answer
neither S1 nor S2
Explanation
Solution
The correct option is (D): neither S1 nor S2