When the economy is at full employment the

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Quizplus · Accepted Answer

When an economy is at full employment, the unemployment rate is at its natural rate of unemployment, which includes frictional and structural unemployment but does not include cyclical unemployment. Therefore, the natural unemployment rate equals the unemployment rate at full employment. However, it is unlikely that the natural unemployment rate is 0 percent or 10 percent, as there will always be some amount of job turnover and restructuring in any economy.

When the Economy Is at Full Employment the