Do policy makers know the level of unemployment that is associated with "full employment"?
A)Yes, economists have the precise level of unemployment that is full employment.
B)Yes, although there is a small range of uncertainty in this measure.
C)No, economists have no idea what this level of unemployment is.
D)No, this number is not known with complete accuracy.

Question

Quizplus · Accepted Answer

The concept of "full employment" does not mean zero unemployment, but rather a level where all who are willing and able to work can find employment. Economists estimate this level, often referred to as the natural rate of unemployment, but it is not known with complete accuracy due to various factors affecting the labor market.

Do Policy Makers Know the Level of Unemployment That Is