Frictional unemployment refers to the temporary unemployment that occurs when individuals are in between jobs or are entering the labor market for the first time. It is often influenced by the availability of information about job openings and the efficiency of the job search process.
Changes in information technology can significantly affect frictional unemployment by making it easier for job seekers to find job openings and for employers to find suitable candidates, hence reducing the time individuals spend in between jobs.
Changes in unemployment insurance, on the other hand, mainly affect the duration individuals remain unemployed, but they do not directly impact the process of job searching or matching individuals with jobs in the same way. Unemployment insurance may provide financial support but can also incentivize some individuals to remain unemployed longer.
Considering these points, the changes in information technology are most likely to have a direct effect on frictional unemployment, while unemployment insurance affects overall unemployment duration more broadly.
Therefore, the correct answer is:
c. Only the changes in information technology
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