When economists talk about full employment they mean _____
A) zero unemployment.
B) seasonal unemployment.
C) structural unemployment.
D) cyclical unemployment.
E) low unemployment.

Question

Quizplus · Accepted Answer

When economists talk about full employment, they do not mean zero unemployment as some level of natural unemployment exists in every economy. Full employment is defined as the lowest possible level of unemployment that still allows for the smooth functioning of an economy. This means that there will always be some level of unemployment due to factors such as frictional and structural unemployment. Therefore, the best choice would be E, low unemployment.

When Economists Talk About Full Employment They Mean _____