Which of the following does not exist when an economy is operating at full employment?
A)An unemployment rate of 5 percent or 6 percent
B)Seasonal unemployment
C)Structural unemployment
D)Cyclical unemployment
E)Frictional unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is a downturn in the economy and is not present when the economy is operating at full employment. At full employment, all individuals who want to work and are able to work have jobs, resulting in a low unemployment rate. Additionally, seasonal, structural, and frictional unemployment may still exist even when the economy is at full employment.

Which of the Following Does Not Exist When an Economy