Full employment occurs
A) only if the unemployment rate is zero.
B) only if the unemployment rate is equal to the natural unemployment rate.
C) only if unemployment is equal to structural unemployment plus cyclical unemployment.
D) None of the above answers are correct.

Question

Quizplus · Accepted Answer

Full employment occurs when the unemployment rate is equal to the natural unemployment rate, which includes frictional and structural unemployment but not cyclical unemployment. This does not mean the unemployment rate is zero.

Full Employment Occurs