According to the text, economists consider full employment to occur when
A)everyone who wants a job has a job.
B)frictional unemployment equals zero.
C)the sum of frictional unemployment and structural unemployment equals zero.
D)the unemployment rate consists of only frictional and structural unemployment.
E)structural unemployment is less than 2 percent.

Question

Quizplus · Accepted Answer

Full employment is considered to occur when the unemployment rate consists only of frictional and structural unemployment, indicating that everyone who is willing and able to work at the prevailing wages can find a job, but there is still some unemployment due to people transitioning between jobs or mismatches between job seekers' skills and job requirements.

According to the Text, Economists Consider Full Employment to Occur