An economy is at full employment when .
A) there is no frictional unemployment
B) there is no structural unemployment
C) the unemployment rate is zero
D) the unemployment rate equals the natural unemployment rate

Question

Quizplus · Accepted Answer

Full employment is when the unemployment rate equals the natural unemployment rate, which includes frictional and structural unemployment. It is not possible to have zero unemployment as there will always be some degree of frictional and structural unemployment in any economy.

An Economy Is at Full Employment When