When an economy is operating at "full employment," as economists usually define the term,
A)Everyone who wants a job has a job.
B)Inflation is a significant problem.
C)The unemployment rate is 4-6 percent.
D)The unemployment rate is 0 percent.

Question

Quizplus · Accepted Answer

Full employment does not mean that the unemployment rate is 0 percent; rather, it acknowledges that there is always some level of frictional and structural unemployment in the economy. Economists often consider an unemployment rate of 4-6 percent as indicative of full employment, reflecting the natural churn of the job market and the match process between employers and employees.

When an Economy Is Operating at "Full Employment," as Economists