When there is full employment,there is no _____ unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the overall economic cycle and occurs during periods of slow economic growth or during recessions. Full employment means the economy is operating at its maximum potential, and thus, there is no cyclical unemployment because it is associated with downturns in the business cycle, which are absent at full employment. Frictional and structural unemployment can still exist at full employment due to the normal turnover in the labor market and mismatches between workers' skills and job requirements, respectively.

When There Is Full Employment,there Is No _____ Unemployment