The full-employment level of real GDP is the level which can be produced with:
A) given technology and productive resources.
B) frictional and structural unemployment equal to zero.
C) cyclical unemployment greater than zero.
D) future technology.

Question

Quizplus · Accepted Answer

The full-employment level of real GDP refers to the maximum output an economy can produce using its current technology and productive resources, without causing inflation. This level accounts for the natural rate of unemployment (including frictional and structural but not cyclical unemployment) and assumes current, not future, technology.

The Full-Employment Level of Real GDP Is the Level Which