Question

Consider the following statements about unemployment: 1. Frictional unemployment occurs due to short-term transitions in the labor market. 2. Structural unemployment arises when there is a mismatch between workers' skills and job requirements. 3. Cyclical unemployment increases during economic expansion and decreases during a recession. Which of the above statements are correct?

A 1 and 2 only
B 2 and 3 only
C 1 and 3 only
D 1, 2, and 3
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