Question

Unemployment refers to a situation when ______.

Options

• a person is not looking for job

• involuntary unemployment

• voluntary unemployment

• none of these

Answer 1

Unemployment refers to a situation when involuntary unemployment.

Explanation:

• Unemployment refers to a situation where a person is willing to work at the prevailing wage rate but cannot find a job.
• This is called involuntary unemployment, a key concept in Keynesian economics.