If unemployment equals the natural unemployment rate, then there
A) is less than full employment.
B) are no job openings existing at the time.
C) is zero unemployment.
D) is only frictional or structural unemployment.

Question

Quizplus · Accepted Answer

When unemployment equals the natural unemployment rate, it means that the economy is at full employment, where only frictional and structural unemployment exist, but not cyclical unemployment.

If Unemployment Equals the Natural Unemployment Rate, Then There