When only frictional unemployment exists, and no structural or cyclical unemployment is present, there is:

Question

Quizplus · Accepted Answer

When only frictional unemployment exists, and there is no structural or cyclical unemployment, it is called full employment. In this scenario, everyone who is willing and able to work is employed, and the unemployment rate is at the natural rate of unemployment, which is a level where there is no inflationary or deflationary pressure in the economy. Seasonal unemployment is a type of cyclical unemployment that occurs due to seasonal changes in demand, so it is not relevant in this scenario. The total natural unemployment in a region would include frictional, structural, and cyclical unemployment, and is therefore not applicable in this case where only frictional unemployment is present.

When Only Frictional Unemployment Exists, and No Structural or Cyclical