Full employment occurs when
A) frictional unemployment is zero.
B) structural unemployment is zero.
C) cyclical and frictional unemployment are zero.
D) cyclical unemployment is zero.

Question

Quizplus · Accepted Answer

Full employment occurs when cyclical unemployment is zero, as this represents the absence of any involuntary unemployment due to a lack of aggregate demand. Frictional and structural unemployment may still exist at full employment, as they are largely considered voluntary in nature.

Full Employment Occurs When