The economist's notion of full employment is the
A) natural rate of unemployment
B) structural rate of unemployment
C) cyclical rate of unemployment
D) frictional rate of unemployment

Question

Quizplus · Accepted Answer

The economist's notion of full employment refers to the natural rate of unemployment, which includes frictional and structural unemployment but excludes cyclical unemployment. This concept acknowledges that even in a healthy economy, there will always be some level of unemployment due to factors like job transitions and skill mismatches, but not due to economic downturns.

The Economist's Notion of Full Employment Is the