Economists expect some unemployment to exist even at times of "full employment" for,among others,the following reasons:
1)actual GDP is rarely equal to potential GDP;
2)as the economy changes,the structure of the existing labour force is not the same as the structure of labour demand;
3)people entering the labour force typically take some time to find a job.
A)1 only
B)2 only
C)3 only
D)2 and 3
E)1 and 2

Question

Quizplus · Accepted Answer

Economist's believe that even in times of "full employment" some level of unemployment will exist due to reasons like the difference between actual GDP and potential GDP, changes in the economy that affects the structure of labor demand, and the fact that people entering the labor force may take some time to find a suitable job. So, option D is the best choice as it combines both reasons 2 and 3.

Economists Expect Some Unemployment to Exist Even at Times of "Full