Which of the following will be true for an economy that is operating at full employment?

Question

Quizplus · Accepted Answer

When an economy is operating at full employment, the actual rate of unemployment will be equal to the natural rate of unemployment. This means that there will still be some unemployment present in the economy due to factors such as frictional unemployment or structural unemployment. However, everyone who is willing and able to work will have a job, so choice D is also partially correct. Option A is not true because there may still be some individuals who are not currently seeking employment, perhaps due to retirement, disability, or other reasons. Option C is not necessarily true because the employment/population ratio can vary even when the economy is at full employment.

Which of the Following Will Be True for an Economy