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AP Macroeconomics study materials
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AP Macroeconomics practice questions

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Question 1Define economic principles and models

In the circular flow model of a market economy, which of the following flows from households to firms through factor markets?

  1. Government transfer payments
  2. Goods and services
  3. Land, labor, capital, and entrepreneurial ability Correct answer.
  4. Payments for final goods

Explanation

Factor markets are where households supply the productive resources that firms demand. Households provide inputs such as labor and capital and receive wages, rent, interest, and profit in return. Goods and services flow the opposite direction, from firms to households in product markets.

Question 2Define economic principles and models

A country can produce either 100 units of wheat or 50 units of cloth with its resources. What is the opportunity cost of one unit of cloth?

  1. 100 units of wheat
  2. 0.5 units of wheat
  3. 2 units of wheat Correct answer.
  4. 50 units of wheat

Explanation

The opportunity cost is found by dividing the maximum of the forgone good by the maximum of the good being produced: 100 wheat / 50 cloth = 2 units of wheat per unit of cloth. The reciprocal, 0.5 units of cloth, is the cost of one unit of wheat.

Question 3Define economic principles and models

The law of demand states that, all else equal, as the price of a good rises, the quantity demanded of that good will:

  1. rise
  2. become perfectly elastic
  3. stay the same
  4. fall Correct answer.

Explanation

The law of demand describes an inverse relationship between price and quantity demanded, holding other factors constant. Higher prices reduce the quantity buyers are willing and able to purchase. This inverse relationship produces a downward-sloping demand curve.

Question 4Define economic principles and models

Which of the following best defines gross domestic product?

  1. The total income earned by a country's citizens anywhere in the world
  2. The market value of all final goods and services produced within a country in a given period Correct answer.
  3. The total value of all sales in an economy in a year
  4. The value of a nation's financial assets held abroad

Explanation

GDP measures the market value of final goods and services newly produced inside a country's borders during a specific time period. Counting only final output avoids double-counting intermediate goods. Income earned by citizens abroad is captured by GNP rather than GDP.

Question 5Define economic principles and models

A movement along a single demand curve for coffee is caused by a change in which of the following?

  1. The price of coffee Correct answer.
  2. Consumer preferences
  3. The price of tea
  4. Consumer income

Explanation

A change in the good's own price changes quantity demanded and is shown as a movement along a given demand curve. Changes in income, related-good prices, or preferences shift the entire curve. Keeping these other determinants fixed is what defines the movement along the curve.

Question 6Define economic principles and models

The production possibilities curve is drawn concave to the origin primarily because of:

  1. constant levels of technology
  2. falling prices of inputs
  3. unlimited resources
  4. increasing opportunity costs as production shifts between goods Correct answer.

Explanation

A bowed-out production possibilities curve reflects the law of increasing opportunity cost. Resources are not equally suited to producing both goods, so transferring them becomes progressively more costly. A straight-line curve would indicate constant opportunity costs.

Question 7Define economic principles and models

Which of the following is counted as investment in the expenditure approach to GDP?

  1. A retiree's purchase of a government bond
  2. A consumer's purchase of a used car
  3. A firm's purchase of a new factory building Correct answer.
  4. A household's purchase of corporate stock

Explanation

In national accounts, investment refers to purchases of new capital goods, including business structures, equipment, and changes in inventories. Buying financial assets is a transfer of ownership, not new production. Used goods were counted when originally produced.

Question 8Define economic principles and models

The primary function of money as a medium of exchange is to:

  1. guarantee a stable value
  2. store purchasing power over time
  3. eliminate the need for a double coincidence of wants Correct answer.
  4. serve as a unit of account for prices

Explanation

As a medium of exchange, money is accepted in payment for goods and services, which removes the barter requirement that each trader want exactly what the other offers. Storing value and serving as a unit of account are separate functions. Money does not guarantee stability of purchasing power.

Question 9Define economic principles and models

If the marginal propensity to consume is 0.75, what is the value of the simple spending multiplier?

  1. 1.33
  2. 3
  3. 4 Correct answer.
  4. 0.75

Explanation

The simple spending multiplier equals 1 divided by (1 minus the marginal propensity to consume). With an MPC of 0.75, the multiplier is 1/0.25 = 4. A larger MPC produces a larger multiplier because more of each dollar is respent.

Question 10Define economic principles and models

Which of the following events would shift the short-run aggregate supply curve to the right?

  1. An increase in government spending
  2. An increase in nominal wages
  3. A decrease in the price of a key input such as energy Correct answer.
  4. A decrease in the capital stock

Explanation

A fall in input prices lowers production costs, so firms are willing to supply more output at every price level, shifting short-run aggregate supply right. Higher wages or a smaller capital stock raise costs or reduce capacity and shift the curve left. Government spending affects aggregate demand.

Question 11Define economic principles and models

A technological advance that lowers production costs will, in the short run, most likely cause:

  1. a fall in the price level and a rise in real output Correct answer.
  2. a rise in the price level and a fall in real output
  3. a rise in both the price level and real output
  4. no change in either the price level or real output

Explanation

A cost-reducing technology shifts short-run aggregate supply to the right. Along a downward-sloping aggregate demand curve, greater supply lowers the equilibrium price level and raises equilibrium real output. This is the standard supply-side effect of improved productivity.

Question 12Define economic principles and models

The natural rate of unemployment consists of which two types of unemployment?

  1. Seasonal and cyclical
  2. Frictional and structural Correct answer.
  3. Cyclical and seasonal
  4. Structural and cyclical

Explanation

The natural rate of unemployment is the unemployment that remains even when the economy is at full employment, made up of frictional and structural unemployment. Cyclical unemployment arises from downturns and represents deviation from the natural rate. Seasonal unemployment is often treated separately or smoothed in annual data.

Question 13Define economic principles and models

The consumer price index rises from 120 to 126. What is the inflation rate over this period?

  1. 4.8 percent
  2. 5 percent Correct answer.
  3. 6.5 percent
  4. 6 percent

Explanation

The inflation rate is the percentage change in the price index: (126 - 120) / 120 = 0.05, or 5 percent. Dividing by the initial index value, not the final one, gives the correct growth rate. Using the final value would understate the rate.

Question 14Define economic principles and models

Which of the following is the opportunity cost to a student of attending college full time?

  1. The forgone earnings from a job plus tuition and fees Correct answer.
  2. Tuition and fees only
  3. The value of the degree after graduation
  4. Room and board only

Explanation

Opportunity cost is the value of the best alternative forgone, which includes both explicit costs such as tuition and implicit costs such as wages not earned. Room and board are usually incurred regardless of enrollment, so they are not part of the incremental cost. The value of the degree is a benefit, not a cost.

Question 15Define economic principles and models

If the government imposes a binding price ceiling below the equilibrium price, the result will be:

  1. an increase in the equilibrium quantity traded
  2. a surplus because quantity supplied exceeds quantity demanded
  3. no effect on the market
  4. a shortage because quantity demanded exceeds quantity supplied Correct answer.

Explanation

A binding price ceiling holds price below equilibrium, where quantity demanded exceeds quantity supplied, creating a shortage. The quantity actually traded falls to the lower quantity supplied. A surplus would require a binding price floor above equilibrium.

Question 16Define economic principles and models

An increase in the reserve requirement, all else equal, will:

  1. decrease the money multiplier and contract the money supply Correct answer.
  2. increase the money multiplier and expand the money supply
  3. leave the money multiplier unchanged but raise bank profits
  4. increase bank lending and lower interest rates

Explanation

The money multiplier is inversely related to the reserve ratio, so raising the required reserve ratio lowers the multiplier. Banks must hold more reserves and can lend less, which contracts the money supply. This is a contractionary monetary policy tool.

Question 17Define economic principles and models

According to the quantity theory of money, if velocity and real output are constant, an increase in the money supply will cause:

  1. no change in the price level
  2. a proportional increase in the price level Correct answer.
  3. a proportional increase in velocity
  4. a proportional decrease in the price level

Explanation

The equation of exchange, MV = PY, implies that with velocity and real output fixed, money and the price level move proportionally. A larger money supply raises nominal spending, which shows up as higher prices. The assumption of constant velocity is what makes the relationship proportional.

Question 18Define economic principles and models

A bank has demand deposits of 500,000 dollars and legally required reserves of 50,000 dollars. What is the required reserve ratio?

  1. 5 percent
  2. 1 percent
  3. 10 percent Correct answer.
  4. 20 percent

Explanation

The required reserve ratio equals required reserves divided by demand deposits: 50,000 / 500,000 = 0.10, or 10 percent. This ratio determines the maximum money multiplier of 1/0.10 = 10. Excess reserves are any holdings above this required amount.

Question 19Define economic principles and models

If a country's exports exceed its imports, which of the following must be true in the national income accounts?

  1. Net exports are positive. Correct answer.
  2. The country has a trade deficit.
  3. National saving is less than domestic investment.
  4. The capital and financial account must show a surplus of zero.

Explanation

Net exports equal exports minus imports, so exports exceeding imports means net exports are positive, a trade surplus. In the saving-investment identity, a trade surplus corresponds to national saving exceeding domestic investment. The financial account records the offsetting outflow of capital.

Question 20Define economic principles and models

An appreciation of the dollar against the euro will most likely:

  1. make European goods cheaper for U.S. buyers and raise U.S. imports
  2. make European goods more expensive for U.S. buyers and reduce U.S. imports Correct answer.
  3. reduce the price of U.S. exports to Europeans
  4. increase U.S. exports to Europe

Explanation

When the dollar appreciates, each dollar buys more euros, so a euro-denominated European good costs more dollars in the United States. U.S. imports from Europe therefore tend to fall. U.S. goods become more expensive for Europeans, so U.S. exports also tend to fall.

Question 21Define economic principles and models

Which of the following best describes the difference between a change in demand and a change in quantity demanded?

  1. A change in demand is a movement along the curve, while a change in quantity demanded is a shift of the curve.
  2. Both terms describe shifts of the demand curve caused by income changes.
  3. Both terms describe movements along the demand curve caused by price changes.
  4. A change in demand is a shift of the curve, while a change in quantity demanded is a movement along the curve. Correct answer.

Explanation

A change in demand refers to a shift of the entire curve caused by a non-price determinant such as income or preferences. A change in quantity demanded refers to movement along a fixed curve caused by a change in the good's own price. Keeping these distinct is essential for predicting market outcomes.

Question 22Define economic principles and models

An economy is operating inside its production possibilities curve. Which statement best explains this outcome?

  1. The economy has experienced a permanent outward shift of its production possibilities.
  2. The economy has achieved an unattainable output combination.
  3. The economy is producing at full employment of all resources.
  4. The economy is using resources inefficiently or some resources are unemployed. Correct answer.

Explanation

Points inside the production possibilities curve represent output levels below the maximum attainable, reflecting inefficiency or unemployed resources. Points on the curve are productively efficient, and points beyond it are currently unattainable. An outward shift of the curve moves the frontier rather than placing the economy inside it.

Question 23Define economic principles and models

Suppose the marginal propensity to import is positive and the marginal tax rate is positive. Compared with the simple spending multiplier, the actual multiplier in this economy will be:

  1. zero, because imports and taxes cancel the multiplier effect
  2. larger, because taxes and imports add spending to the economy
  3. the same, because only the marginal propensity to consume matters
  4. smaller, because taxes and imports reduce the fraction of each dollar respent domestically Correct answer.

Explanation

Income taxes and imports are leakages from the spending stream, so each round of respending is smaller than in the simple model. The multiplier therefore becomes 1/(1 - MPC(1 - t) + MPM), which is less than 1/(1 - MPC). Leakages always reduce the size of the multiplier.

Question 24Define economic principles and models

In the short-run Phillips curve framework, a policy that permanently raises aggregate demand growth will, according to the natural rate hypothesis, result in:

  1. no change in either unemployment or inflation at any horizon
  2. a permanent reduction in unemployment with no change in inflation
  3. a temporary reduction in unemployment followed by a return to the natural rate at a higher inflation rate Correct answer.
  4. a permanent reduction in both unemployment and inflation

Explanation

The natural rate hypothesis holds that expansionary demand policy can lower unemployment only temporarily as expectations adjust. Once workers and firms revise inflation expectations upward, the short-run Phillips curve shifts and unemployment returns to the natural rate at a higher inflation rate. There is no permanent trade-off between inflation and unemployment.

Question 25Define economic principles and models

A country's central bank sells government bonds in the open market while the government simultaneously runs a large budget deficit. Which combination best describes the likely effect on the loanable funds market?

  1. Both actions increase the demand for loanable funds and raise interest rates.
  2. The bond sale increases reserves while deficit spending reduces the demand for loanable funds, lowering interest rates.
  3. Both actions increase the supply of loanable funds and lower interest rates.
  4. The bond sale reduces reserves while deficit spending raises the demand for loanable funds, putting upward pressure on interest rates. Correct answer.

Explanation

An open-market sale of bonds by the central bank drains reserves and reduces the supply of loanable funds. Simultaneously, government deficit spending increases the demand for loanable funds. Both forces push the equilibrium interest rate upward, illustrating crowding-out pressure.

Question 26Define economic principles and models

A point located on a production possibilities curve represents which of the following?

  1. A combination of outputs that leaves some resources unemployed
  2. A combination of outputs that is unattainable with current resources
  3. A combination of outputs that fully and efficiently uses available resources Correct answer.
  4. A combination of outputs that requires no trade-off between goods

Explanation

Points on the curve show maximum attainable output given current resources and technology, meaning resources are fully and efficiently employed. Points inside the curve indicate inefficiency or unemployment, while points outside are unattainable. The curve itself embodies the trade-off between the two goods.

Question 27Define economic principles and models

In a market with a downward-sloping demand curve and an upward-sloping supply curve, a decrease in the price of a complement will most likely cause which of the following?

  1. A leftward shift of the demand curve for the good
  2. A leftward shift of the supply curve for the good
  3. A rightward shift of the demand curve for the good Correct answer.
  4. A movement up along the demand curve for the good

Explanation

Goods used together are complements, so a fall in the price of one raises the quantity demanded of the other at every price. This is a shift of the demand curve to the right, not a movement along it. Supply is unaffected because the change involves consumer demand for a related good.

Question 28Define economic principles and models

If nominal GDP is 800 billion dollars and the GDP deflator is 125, what is real GDP?

  1. 125 billion dollars
  2. 640 billion dollars Correct answer.
  3. 675 billion dollars
  4. 1000 billion dollars

Explanation

Real GDP equals nominal GDP divided by the deflator expressed as a decimal, so 800 divided by 1.25 equals 640 billion dollars. The deflator scales nominal values down to base-year prices. Dividing by the deflator removes the effect of price changes.

Question 29Define economic principles and models

An economy is initially at its long-run equilibrium. A sharp rise in energy prices raises production costs across many industries. In the short run, which of the following best describes the effect?

  1. Aggregate demand shifts right, raising both the price level and real output
  2. Aggregate demand shifts left, lowering both the price level and real output
  3. Aggregate supply shifts left, raising the price level and lowering real output Correct answer.
  4. Aggregate supply shifts right, lowering the price level and raising real output

Explanation

Higher input costs reduce the quantity firms are willing to supply at each price level, shifting short-run aggregate supply to the left. The resulting equilibrium shows a higher price level combined with lower real output, a pattern often called cost-push pressure. Aggregate demand is not directly shifted by a change in production costs.

Question 30Define economic principles and models

Which of the following is the best example of frictional unemployment?

  1. A recent graduate who is searching for a first job that matches her skills Correct answer.
  2. A ski instructor who is unemployed during the summer off-season
  3. A construction worker who is jobless because a recession has eliminated building projects
  4. A textile worker whose job disappeared because of foreign competition

Explanation

Frictional unemployment refers to the short-term joblessness that occurs while people search for or transition between jobs, such as new entrants looking for suitable work. It reflects the time needed to match workers with openings. The other cases reflect cyclical, structural, or seasonal causes.

Question 31Define economic principles and models

A country's nominal interest rate is 7 percent and the expected inflation rate is 3 percent. What is the approximate real interest rate?

  1. 4 percent Correct answer.
  2. 10 percent
  3. 7 percent
  4. 3 percent

Explanation

The real interest rate is approximately the nominal rate minus the expected inflation rate, so 7 percent minus 3 percent equals about 4 percent. This relationship is captured by the Fisher equation. The real rate reflects the purchasing-power return to lenders.

Question 32Define economic principles and models

A closed economy has consumption of 500 billion dollars, government spending of 200 billion dollars, and national saving of 150 billion dollars. Assuming no transfers and a balanced budget is not required, what is the level of investment?

  1. 650 billion dollars
  2. 350 billion dollars
  3. 150 billion dollars Correct answer.
  4. 50 billion dollars

Explanation

In a closed economy with no international flows, national saving equals domestic investment, so investment is 150 billion dollars. National saving is the portion of output not consumed by households or government. The consumption and spending figures describe how output is allocated but do not change the saving-investment identity.

Question 33Define economic principles and models

A central bank wants to reduce the money supply. Which combination of open-market operations and discount-rate policy would most directly accomplish this goal?

  1. Buying government bonds and lowering the discount rate
  2. Buying government bonds and raising the discount rate
  3. Selling government bonds and lowering the discount rate
  4. Selling government bonds and raising the discount rate Correct answer.

Explanation

Selling government bonds drains reserves from the banking system, which contracts the money supply through the deposit multiplier. Raising the discount rate discourages borrowing reserves from the central bank, reinforcing the contraction. Both tools therefore work in the same contractionary direction.

Question 34Define economic principles and models

A bakery can produce either 200 loaves of bread or 50 cakes with its available resources. What is the opportunity cost of producing one additional cake?

  1. 0.25 loaves of bread
  2. 1 cake
  3. 50 loaves of bread
  4. 4 loaves of bread Correct answer.

Explanation

Opportunity cost is measured by the slope of the production possibilities curve, here 200 loaves divided by 50 cakes, giving 4 loaves per cake. Producing one more cake requires resources that could have made 4 loaves.

Question 35Explain given economic outcomes

An economy is operating with a recessionary output gap. Which combination of fiscal and monetary policy actions would most likely move output toward full employment?

  1. Increase taxes and increase the reserve requirement
  2. Decrease government spending and decrease the discount rate
  3. Increase government spending and buy bonds in the open market Correct answer.
  4. Decrease government spending and sell bonds in the open market

Explanation

Closing a recessionary gap requires expansionary policy that raises aggregate demand. Higher government spending and open-market purchases of bonds both increase spending and lower interest rates, shifting aggregate demand rightward.

Question 36Explain given economic outcomes

Which event would shift a country's short-run aggregate supply curve to the right?

  1. A decrease in the price of a key imported input Correct answer.
  2. An increase in the corporate profits tax
  3. An increase in nominal wages
  4. An increase in expected inflation

Explanation

A fall in input prices lowers production costs, so firms supply more output at every price level, shifting short-run aggregate supply right. The other events raise costs or expectations and shift the curve left.

Question 37Explain given economic outcomes

If the marginal propensity to consume is 0.75, what is the total change in equilibrium output from a $100 increase in government spending, assuming no crowding out?

  1. $133
  2. $400 Correct answer.
  3. $75
  4. $1,000

Explanation

The spending multiplier equals 1 divided by (1 minus the MPC), which is 1/0.25 = 4. Multiplying the $100 spending change by 4 gives a $400 total change in output.

Question 38Explain given economic outcomes

Which of the following is counted in a nation's current account?

  1. A foreign resident's purchase of domestic government bonds
  2. A domestic bank's loan to a foreign company
  3. A domestic firm's purchase of a factory abroad
  4. Exports of domestically produced goods Correct answer.

Explanation

The current account records trade in goods and services plus income flows and transfers. Exported goods are a credit in the goods balance of the current account.

Question 39Explain given economic outcomes

A country's currency depreciates in foreign exchange markets. Which outcome is most likely?

  1. Its inflation rate falls immediately
  2. Its trade deficit necessarily widens
  3. Its exports become cheaper for foreign buyers Correct answer.
  4. Its imports become cheaper for domestic buyers

Explanation

Depreciation lowers the foreign-currency price of domestic goods, making exports more attractive abroad. Imports become more expensive rather than cheaper, which tends to raise, not lower, domestic prices.

Question 40Explain given economic outcomes

In the short run, an increase in aggregate demand when the economy is far below full employment will most likely cause

  1. an increase in the price level with no change in output
  2. a fall in the price level with no change in output
  3. a fall in output and a rise in the price level
  4. an increase in output with little change in the price level Correct answer.

Explanation

With substantial unemployed resources, the short-run aggregate supply curve is relatively flat, so demand increases mainly raise real output. Price pressure is limited until the economy nears capacity.

Question 41Explain given economic outcomes

The natural rate of unemployment is best described as

  1. the rate that exists when cyclical unemployment is at its maximum
  2. the sum of frictional and structural unemployment Correct answer.
  3. the rate that falls to zero when the economy reaches full employment
  4. the unemployment rate during a severe recession

Explanation

The natural rate consists of frictional plus structural unemployment and corresponds to full-employment output. Cyclical unemployment is zero at that point even though the natural rate remains positive.

Question 42Explain given economic outcomes

A central bank conducts an open-market sale of government bonds. What is the most likely short-run effect?

  1. The money supply rises and interest rates fall
  2. The money supply falls and interest rates rise Correct answer.
  3. The money supply falls and interest rates fall
  4. The money supply rises and interest rates rise

Explanation

Selling bonds removes reserves from the banking system, reducing the money supply. A smaller money supply raises the interest rate that equilibrates money demand and supply.

Question 43Explain given economic outcomes

Real GDP per capita rises from $40,000 to $42,000 over one year. Approximately what is the growth rate?

  1. 20 percent
  2. 0.5 percent
  3. 5 percent Correct answer.
  4. 2 percent

Explanation

The growth rate equals the change divided by the initial value: $2,000/$40,000 = 0.05, or 5 percent. Dividing the change by the new value would give a smaller, incorrect figure.

Question 44Explain given economic outcomes

An economy experiences a sharp rise in the price of imported oil. In the short run, this most likely causes

  1. a rightward shift of aggregate demand with higher output
  2. a rightward shift of short-run aggregate supply and lower prices
  3. no change in aggregate supply because oil is not a final good
  4. a leftward shift of short-run aggregate supply with higher prices and lower output Correct answer.

Explanation

Oil is a major input, so a price spike raises production costs and shifts short-run aggregate supply left. The result is stagflation: higher price level together with lower real output.

Question 45Explain given economic outcomes

If the government increases spending by $50 billion and the marginal propensity to save is 0.2, what is the maximum total change in equilibrium real GDP?

  1. $62.5 billion
  2. $200 billion
  3. $500 billion
  4. $250 billion Correct answer.

Explanation

With an MPS of 0.2, the MPC is 0.8 and the multiplier is 1/0.2 = 5. Multiplying $50 billion by 5 gives $250 billion.

Question 46Explain given economic outcomes

A government reduces spending during an economic expansion to avoid overheating. This policy is best described as

  1. expansionary monetary policy
  2. automatic stabilizer policy
  3. contractionary fiscal policy Correct answer.
  4. expansionary fiscal policy

Explanation

Cutting government spending reduces aggregate demand, which is contractionary fiscal policy. It is appropriate when the economy is operating above potential output.

Question 47Explain given economic outcomes

Crowding out occurs when

  1. government borrowing raises interest rates and reduces private investment Correct answer.
  2. government spending raises interest rates and increases private investment
  3. a budget surplus lowers interest rates and reduces consumption
  4. the central bank buys bonds and lowers the interest rate

Explanation

Deficit-financed government spending increases the demand for loanable funds, pushing interest rates up. Higher rates discourage interest-sensitive private investment, partially offsetting the fiscal stimulus.

Question 48Explain given economic outcomes

A commercial bank has $1,000 in new deposits and the reserve requirement is 10 percent. If banks hold no excess reserves, what is the maximum possible increase in the money supply from this deposit?

  1. $1,000
  2. $100
  3. $10,000
  4. $9,000 Correct answer.

Explanation

The money multiplier equals 1 divided by the reserve ratio, or 1/0.10 = 10. The maximum new money created is $1,000 times 10 minus the original deposit, or $9,000 in newly created money.

Question 49Explain given economic outcomes

If a country's inflation rate is higher than that of its trading partners and exchange rates are flexible, which outcome is most likely?

  1. Its currency appreciates and its exports rise
  2. Its currency appreciates and its imports fall
  3. Its inflation rate falls automatically to match its partners
  4. Its currency depreciates and its exports become more competitive Correct answer.

Explanation

Higher domestic inflation makes a country's goods relatively expensive, reducing demand for its currency and causing depreciation. Depreciation then restores competitiveness by lowering export prices in foreign currency.

Question 50Explain given economic outcomes

Which situation best illustrates frictional unemployment?

  1. A worker quits a job to search for a better match Correct answer.
  2. A construction worker is laid off because of a housing downturn
  3. A textile worker loses a job because of automation
  4. A teacher works part-time because full-time work is unavailable

Explanation

Frictional unemployment is short-term unemployment from the search process as workers move between jobs. Voluntarily leaving to search fits this definition.