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27 February, 20:37

Sandy has graduated from college and is devoting her time to searching for a job. She has seen plenty of openings but has not yet been offered one that best suits her tastes and skills. Sandy is:

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  1. 27 February, 23:24
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    Sandy is frictionally unemployed. Frictional unemployment exists even in the long run.

    Explanation:

    Frictional unemployment is a part of normal labor turnover. It happens when people are looking for jobs or transitioning between jobs in a healthy economy. It does not matter if the person has quit or has been fired. Frictional unemployment is also common due to heterogeneity between jobs and the people available to take them. That is the case with Sandy - the economy is not bad; jobs are clearly available, since she has seen plenty of openings. She is unemployed because she is exploring the options to choose the one that will best suit her. That is frictional unemployment.
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