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Changes in the products for which a nation has a comparative advantage create sectoral shocks leading to an increase in frictional unemployment. a. True b. False

Sagot :

Parrain

Answer: False

Explanation:

Frictional unemployment is a natural unemployment that results when people enter the labor force for the first time and when people move from one job to another. It is therefore not caused by sectoral shocks and every economy, even the best performing ones, will have frictional unemployment.

The unemployment that results from sectoral shocks is cyclical unemployment. This one is not natural and results from the business cycle and shocks to the economy.

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