Answer:
The correct answer is (C) only frictional unemployment exists.
Explanation:
The unemployment rate is considered natural and refers to this term in a certain way because there are workers who change jobs for professional aspirations or for the improvement of the quality of life, due to its proximity to the new workplace and the remoteness of the previous one. Even when there is full employment there are certain unemployed people, it is what is known as frictional unemployment, since workers need time to find the right job.
This isn't even a question
Answer:
When labor productivity is high.
Explanation:
According to neoclassical economic theory, real wages are equal to the marginal product of labor (MLP). The marginal product of labor is the extra output produced by one extra unit of labor (one extra worker).
If the MPL is high, this means that workers are very productive, and therefore, are paid a high real wage accordingly.
This is why countries with high labor productivity like the U.S. or Switzerland also have very high real wages.
