The rate of unemployment when there is full employment in the economy is known as _____ unemployment.
A) cyclical
B) the natural rate of
C) seasonal
D) structural

Question

Quizplus · Accepted Answer

The natural rate of unemployment refers to the unemployment level that exists when the economy is at full employment, accounting for frictional and structural unemployment but not cyclical unemployment. Cyclical unemployment is related to the business cycle, whereas seasonal and structural unemployment are not indicative of full employment conditions.

The Rate of Unemployment When There Is Full Employment in the Economy