Which of the following does not exist when an economy is operating at full employment?
A) an unemployment rate of 5 percent or 6 percent
B) seasonal unemployment
C) structural unemployment
D) cyclical unemployment
E) frictional unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment is the type of unemployment that occurs when there is a recession or downturn in the economy. When an economy is operating at full employment, there is no cyclical unemployment. However, there may still be other types of unemployment, such as frictional unemployment (unemployment caused by workers who are in between jobs) or structural unemployment (unemployment caused by a mismatch between the skills of workers and the available jobs). Additionally, seasonal unemployment may still exist in certain industries, even when the economy is at full employment.

Which of the Following Does Not Exist When an Economy