Which of the following is true?
A)Frictional unemployment implies a lack of available jobs.
B)During a recession,cyclical unemployment will be low.
C)When an economy is at full employment,actual unemployment will be less than the natural rate of unemployment.
D)When actual GDP equals potential GDP,the actual unemployment rate will equal the economy's natural rate of unemployment.

Question

Quizplus · Accepted Answer

When actual GDP equals potential GDP, the economy is at its natural level of output or potential output, meaning all available resources, including labor, are being utilized. At this point, the economy is said to be at full employment, and the actual rate of unemployment will be equal to the natural rate of unemployment.

Which of the Following Is True