The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms. TABLE 19-1 Refer to Table 19-1.In which years are the factors of production in this economy said to be "fully employed"?
A)2012,2013,2017
B)2014,2018
C)2015,2016
D)all years
E)none of the years

Question

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.  TABLE 19-1 Refer to Table 19-1.In which years are the factors of production in this economy said to be "fully employed"?
A)2012,2013,2017 
B)2014,2018 
C)2015,2016 
D)all years 
E)none of the years

Quizplus · Accepted Answer

Factors of production are considered to be fully employed when the unemployment rate is at the natural rate of unemployment, which is estimated to be around 4-5%. In 2014 and 2018, the unemployment rate is at or below 5%, indicating full employment. In all other years, the unemployment rate is above 5%, indicating that the factors of production are not fully employed.

The Table Below Provides Macroeconomic Data for a Hypothetical Economy