When macroeconomics refers to "full employment," what do they mean?
A) Full employment occurs when the unemployment rate equals zero.
B) Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated.
C) Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated.
D) Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated.

Question

Quizplus · Accepted Answer

Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated. This means that there is an absence of involuntary unemployment, and the economy is functioning at its maximum potential with all resources being efficiently utilized.

When Macroeconomics Refers to "Full Employment," What Do They Mean