When all workers who want jobs have them and the demand for and supply of labor are in equilibrium,
A)the unemployment rate will be zero.
B)unemployment is at its natural rate.
C)the economy will be experiencing high rates of inflation.
D)frictional unemployment will be zero.

Question

Quizplus · Accepted Answer

When demand for labor is equal to the supply of labor, the economy is said to be at full employment or the natural rate of unemployment. This does not mean that there is zero unemployment, as some level of unemployment (such as frictional or structural unemployment) will always exist. However, the unemployment rate is at its "natural" or "normal" level, which varies depending on the economy and its characteristics. High rates of inflation are not necessarily related to the labor market equilibrium.

When All Workers Who Want Jobs Have Them and the Demand