(STEP 1 : DEFINE UNEMPLOYMENT)

People are unemployed when they are able and willing to work but cannot find a job.

(STEP 2: COMPARE FRICTIONAL UNEMPLOYMENT WITH CYCLICAL UNEMPLOYMENT)

There are several ways how frictional unemployment differs from cyclical unemployment:

💼(1) Frictional unemployment is temporary and arises where people are in-between jobs whereas cyclical unemployment results from a lack of aggregate demand.

Frictional unemployment is transitional unemployment that occurs when people change jobs, due to the time delay between leaving a job and finding or starting a new one. On the other hand, cyclical unemployment, also known as demand-deficient unemployment, is caused by a lack of aggregate demand, which causes a full in national income.