Full employment occurs when
A) there is no cyclical unemployment.
B) there is no unemployment.
C) there is no frictional unemployment.
D) the unemployment rate is less than 5 percent.

Question

Quizplus · Accepted Answer

Full employment is achieved when there is no cyclical unemployment, meaning the unemployment that results from economic downturns or recessions is absent. It does not imply the absence of all unemployment, as some level of frictional and structural unemployment is considered normal.

Full Employment Occurs When