Final answer:
The correct answer to the question about frictional unemployment is that it is always a positive number, FU>0. Frictional unemployment is an expected and healthy part of a dynamic economy, where workers move between jobs to match better with their skills.
Step-by-step explanation:
Which of the following statements about frictional unemployment is correct? The correct answer is a. It is always a positive number, FU>0. Frictional unemployment is a type of unemployment that happens when workers are between jobs, having left one job and searching for another. It is a normal part of a healthy economy, as there will always be workers looking for jobs that are a better match for their skills and employers with open positions looking for suitable candidates.
The level of frictional unemployment will depend on factors such as the ease of communication about job prospects and the willingness of people to move to new areas for work. Contrary to the statement in option b, it cannot be negative, as it reflects the number of people in the process of changing jobs, not a deficit of workers. It also cannot be zero as indicated in option c because there are always people transitioning between jobs, and as indicated in option d, it is related to the overall unemployment rate, though it is not the only type contributing to it.
Fighting Unemployment or Inflation? discussions reveal that most economists view frictional unemployment not as a negative phenomenon but as a necessary dynamic for matching workers with the best jobs for their skills. It's part of the natural rate of unemployment, which also includes structural unemployment, and differs from cyclical unemployment which fluctuates with the business cycle.