What does the term 'frictional unemployment' refer to in economics?

Correct option is C

The correct answer is (C) Temporary unemployment as a person moves from one job to another

Explanation:
• Frictional unemployment is the result of voluntary employment transitions within an economy.
• It is the time period between when a worker leaves a job and finds a new one (search unemployment).

Information Booster:
• It is considered a normal part of a healthy economy because it shows workers are looking for better opportunities.

Additional Knowledge:
• Cyclical Unemployment (Option B): Unemployment caused by a downturn in the business cycle (recession).
• Seasonal Unemployment (Option A): Occurs when demand for labor changes based on the time of year (e.g., agriculture).