"Full employment" refers to the situation when there is
A) 100 percent employment of the labor force.
B) 0 percent unemployment rate.
C) no frictional or structural unemployment.
D) no cyclical unemployment.

Question

Quizplus · Accepted Answer

Full employment refers to the absence of cyclical unemployment, meaning the economy is operating at its maximum sustainable level of employment where only frictional and structural unemployment exist. It does not imply 100% employment or a 0% unemployment rate, as there will always be some level of frictional and structural unemployment.

"Full Employment" Refers to the Situation When There Is