Statement I: When there is full employment,there is no frictional unemployment.
Statement II: When there is full employment,there are no "discouraged" workers.

Question

Quizplus · Accepted Answer

Statement I is false because frictional unemployment is caused by workers who are in between jobs or are searching for a better job, even in a situation of full employment. 
Statement II is false because discouraged workers are those who have given up looking for a job due to a lack of prospects, and this can occur regardless of the level of employment.

Statement I: When There Is Full Employment,there Is No Frictional