When the economy is at full employment, _____ is zero.
A) unemployment
B) cyclical unemployment
C) frictional unemployment
D) the natural rate of unemployment

Question

Quizplus · Accepted Answer

When the economy is at full employment, cyclical unemployment is zero. Cyclical unemployment arises from economic downturns and disappears when the economy is at full employment, unlike frictional and structural unemployment which can still exist at full employment.

When the Economy Is at Full Employment, _____ Is Zero