Full employment:
A) means that 100 percent of the labor force is working.
B) means that only the frictionally unemployed are out of work.
C) occurs when approximately 90 percent of the labor force is working.
D) occurs at a rate of unemployment which is universally agreed on and has not changed over the years.

Question

Quizplus · Accepted Answer

Full employment does not mean that 100% of the labor force is working. It acknowledges the existence of frictional unemployment, which refers to people who are temporarily between jobs, for reasons such as moving to a new location, or searching for a better job. This state is considered a healthy level of unemployment in an economy.

Full Employment