When cyclical unemployment is zero,
A) structural unemployment is zero.
B) cyclical and frictional unemployment are zero.
C) the unemployment rate equals the natural unemployment rate.
D) frictional unemployment is zero.

Question

Quizplus · Accepted Answer

When cyclical unemployment is zero, it means the economy is operating at full employment. This implies that frictional and structural unemployment are still present but the unemployment rate would be equal to the natural unemployment rate.

When Cyclical Unemployment Is Zero