When an economy is operating at full employment,_____.
A)structural unemployment does not exist
B)cyclical unemployment does not exist
C)the unemployment rate is zero
D)seasonal unemployment does not exist
E)the number of discouraged workers is zero

Question

Quizplus · Accepted Answer

Cyclical unemployment does not exist when an economy is operating at full employment, as cyclical unemployment is associated with economic downturns. Full employment typically means the economy is producing at its potential, and any remaining unemployment is not due to a lack of demand.

When an Economy Is Operating at Full Employment,_____