When the unemployment rate is equal to the natural unemployment rate,full employment exists.

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Quizplus · Accepted Answer

Full employment exists when the economy is producing output at its potential level, and the unemployment rate is equal to the natural unemployment rate. The natural unemployment rate represents the level of unemployment that exists when the labor market is in equilibrium and there is no cyclical unemployment. Therefore, when the unemployment rate is equal to the natural rate, there is no cyclical unemployment, and the economy is at full employment.

When the Unemployment Rate Is Equal to the Natural Unemployment