The full-employment rate of unemployment is also called the
A) potential rate of unemployment.
B) cyclical rate of unemployment.
C) frictional rate of unemployment.
D) natural rate of unemployment.

Question

Quizplus · Accepted Answer

The full-employment rate of unemployment is also known as the natural rate of unemployment, which refers to the level of unemployment that exists during normal economic conditions when the economy is operating at full capacity. It includes frictional and structural unemployment, but not cyclical unemployment.

The Full-Employment Rate of Unemployment Is Also Called the