Question

Frictional unemployment rate of ________ is consistent with full employment level, as per the experience of developed countries.

• A. 3 to 4%
• B. 5 to 8%
• C. upto 2%
• D. 10 to 15%

Answer 1

The correct option is A 3 to 4%

Frictional unemployment is an unemployment situation where people are not unemployed owing to not getting any job but they are unemployed because they are searching for a new job or they are getting transferred from one employment to the other. Frictional unemployment remains consistent with full employment if it is at a rate of 3-4% of the full employment.

Hence, option A is correct.