If the economy were at its potential output level,which of the following is not true?
A)The actual unemployment rate would equal the natural rate.
B)There would be some cyclical unemployment.
C)There would be some seasonal unemployment.
D)There would be some frictional unemployment.
E)There would be some structural unemployment.

Question

Quizplus · Accepted Answer

At potential output, cyclical unemployment is zero because the economy is operating at full capacity. However, frictional, structural, and seasonal unemployment can still exist.

If the Economy Were at Its Potential Output Level,which of the Following