4 why frictional unemployment is deemed desirable 5if busin

4 -why frictional unemployment is deemed desirable ?

5-if business cycles were really inevitable, what purpose would macro policy serve ?

6- what jobs are likely part of the underground economy ?

Solution

Frictional unemployment: It happens when workers have left jobs but not having new jobs in hands.

This is desired because of efficient allocation of labor resource. Leaving a job and searching for a new job by a worker means searching for better utilization of his/her skill. At the same time an employer is also searching a suitable employee for suitable job. If the both-way searching matched then the efficient allocation could be done, which indicates the growth of the economy.