5. Even an efficient exchange economy will experience some unemployment. Frictional unemployment results because of imperfect information

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5. Even an efficient exchange economy will experience some unemployment. Frictional unemployment results because of imperfect information about available job openings and qualified applicants. Structural unemployment results because there are factors that prevent the "matching up" of available applicants with available jobs.

Currently, frictional and structural unemployment in the United States are thought to involve between 5 and 6 percent of the labor force.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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