When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is
A) falling over time.
B) equal to zero.
C) equal to the actual amount of unemployment.
D) greater than the level of deficient demand unemployment.

Question

Quizplus · Accepted Answer

Full employment in economic terms does not mean zero unemployment; rather, it refers to the situation where all unemployment is either frictional or structural, meaning everyone who wants a job at the current wage rates can find one, but some are between jobs or are in industries that are shrinking.

When Economists Speak of Full Employment, They Refer to the Case