The unemployment rate that would be consistent with full employment is:
A) equal to the cyclical unemployment rate.
B) equal to zero.
C) equal to the total of frictional and structural unemployment.
D) a fixed unemployment rate that does not change over time.

Question

Quizplus · Accepted Answer

Full employment occurs when there is no cyclical unemployment, but frictional and structural unemployment still exist, as they are natural parts of a dynamic economy.

The Unemployment Rate That Would Be Consistent with Full Employment