Better Job Matching Reduces Frictional Unemployment

Steps:

• Define frictional unemployment as short-term job search between roles.
• Identify causes: imperfect information leads to longer search times.
• Link reduction to factors improving job-vacancy matching efficiency.
• Evaluate options: select the one directly enhancing labor market information flow.

Why D is correct:

• Frictional unemployment measures time to match workers and jobs; more information on vacancies shortens search duration, per labor economics matching theory.

Why the others are wrong:

• A: Capital-intensive manufacturing displaces workers, increasing structural unemployment.
• B: Public sector demand creates jobs, reducing cyclical unemployment.
• C: Education spending builds skills long-term, targeting structural unemployment.

Final answer: D