Which of the following is true?
A)Frictional unemployment implies a lack of available jobs.
B)During a recession,cyclical unemployment will be low.
C)When an economy is at full employment,cyclical unemployment will be absent.
D)When an economy is at full employment,actual unemployment will be below the natural rate.

Question

Quizplus · Accepted Answer

When an economy is at full employment, cyclical unemployment will be absent because there are no resources left that can be utilized to create additional jobs. However, there may still be some frictional or structural unemployment present in the economy.

Which of the Following Is True