Full employment exists when
A) there is only frictional and structural unemployment.
B) the economy is at the natural unemployment rate.
C) there is no cyclical unemployment.
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

Full employment is achieved when the only types of unemployment present are frictional and structural, which corresponds to the natural rate of unemployment and implies the absence of cyclical unemployment. Thus, all the given options collectively describe the state of full employment.

Full Employment Exists When