When the economy is at full employment the

Question

Quizplus · Accepted Answer

When the economy is at full employment, there is still likely to be some level of unemployment due to factors such as job search and job mismatch. This is referred to as the natural unemployment rate. At full employment, the unemployment rate will be equal to the natural unemployment rate, which will typically be above 0 percent but below 10 percent. Therefore, choice A is the best answer as it reflects this relationship.

When the Economy Is at Full Employment the