If the economy is operating at full employment, then
A)everyone who wants a job has one.
B)the entire labour force is employed.
C)the unemployment rate is approximately 3 percent.
D)the unemployment rate is zero.
E)the unemployment rate is equal to the frictional unemployment rate plus the structural unemployment rate.

Question

Quizplus · Accepted Answer

At full employment, the economy experiences natural unemployment, which includes frictional and structural unemployment, but not cyclical unemployment.

If the Economy Is Operating at Full Employment, Then