Full employment does not mean that there is zero unemployment because
A)business fluctuations are inevitable.
B)of the existence of discouraged searchers.
C)some cyclical unemployment is always present.
D)of unrealistic wage expectations.
E)some frictional and structural unemployment is always present.

Question

Quizplus · Accepted Answer

Frictional unemployment is a temporary type of unemployment that occurs when workers are transitioning between jobs, and structural unemployment is caused by changes in the economy that make certain skills or industries obsolete. Both types of unemployment can exist even when the economy is at full employment, meaning that all available labor resources are being used efficiently.

Full Employment Does Not Mean That There Is Zero Unemployment