Full employment is
A) zero unemployment.
B) when the unemployment level is reduced to the goal set by Congress.
C) the unemployment level when the normal friction in the economy is taken in account.
D) when all adults looking for work can find full time occupation.

Question

Quizplus · Accepted Answer

Full employment does not mean zero unemployment; rather, it refers to the level of unemployment when the economy is operating at its productive potential. This includes frictional unemployment, which is the time lag between jobs as people move between roles or enter the workforce, but excludes higher levels of structural or cyclical unemployment.

Full Employment Is