Full employment occurs when the unemployment rate falls to:

Question

Quizplus · Accepted Answer

Full employment is considered to occur when the unemployment rate falls to a level that includes only the frictionally unemployed, meaning those who are temporarily between jobs or are seeking better positions. This does not mean a zero unemployment rate, as there will always be some level of frictional unemployment in a healthy economy. Structural and cyclical unemployment are not components of full employment.

Full Employment Occurs When the Unemployment Rate Falls To