What will an economy that is operating at its potential output NOT experience?
A)frictional unemployment
B)structural unemployment
C)unemployment
D)cyclical unemployment

Question

Quizplus · Accepted Answer

An economy operating at its potential output is at full employment, meaning there is no cyclical unemployment present. However, frictional and structural unemployment may still exist as they are not related to output levels but rather to mismatches between job seekers and available jobs.

What Will an Economy That Is Operating at Its Potential