If the economy is operating with full employment, which of the following is essentially eliminated?
A)frictional unemployment
B)structural unemployment
C)cyclical unemployment
D)all of the above

Question

If the economy is operating with full employment, which of the following is essentially eliminated?
A)​frictional unemployment
B)​structural unemployment
C)​cyclical unemployment
D)​all of the above

Quizplus · Accepted Answer

Full employment means that there is no cyclical unemployment, which is unemployment caused by a downturn in the business cycle. However, frictional and structural unemployment can still exist even at full employment. Frictional unemployment is caused by people voluntarily changing jobs or entering the workforce for the first time, while structural unemployment is caused by a mismatch of skills between available jobs and the workforce.

If the Economy Is Operating with Full Employment, Which of the Following