Full employment
A) consists of frictional unemployment and cyclical unemployment.
B) consists of structural unemployment and cyclical unemployment.
C) is an unemployment rate of zero.
D) occurs if cyclical unemployment is zero.

Question

Quizplus · Accepted Answer

Full employment occurs when there is no cyclical unemployment, meaning the only types of unemployment are frictional and structural, which are considered natural in a healthy economy. Cyclical unemployment is associated with economic downturns, so its absence indicates an economy operating at its potential.

Full Employment