Full-employment output is the amount of output produced when the economy is
A)in recession.
B)above the natural rate of unemployment.
C)utilizing all of its labor and capital.
D)in equilibrium.

Question

Quizplus · Accepted Answer

Full-employment output is the level of output produced when all available resources, including labor and capital, are fully utilized. This means that there is no cyclical unemployment or underutilization of capital, and the economy is operating at its potential output level.

Full-Employment Output Is the Amount of Output Produced When the Economy