When the U.S.economy is at its full-employment level, the unemployment rate is not equal to zero because:
A)cyclical unemployment is always present in a modern economy.
B)of the statistical discrepancy.
C)voluntary unemployment is always positive.
D)frictional and structural unemployment are always present in a modern economy.
E)there are always people who are too lazy to work.

Question

Quizplus · Accepted Answer

Frictional and structural unemployment are considered natural and inevitable in a dynamic economy, and even at full employment, there will always be people who are between jobs or seeking better opportunities. Therefore, unemployment cannot be reduced to zero. The other options are not accurate as cyclical unemployment can be eliminated during periods of high economic growth, the statistical discrepancy should not significantly impact the unemployment rate, voluntary unemployment can be negative, and it is not accurate to assume that everyone who is unemployed is lazy.