If the economy were at its potential output level,which of the following would not be true?
A)The actual unemployment rate would equal the natural rate.
B)The labor market would be in equilibrium.
C)There would be some seasonal unemployment.
D)Frictional unemployment would be zero.
E)There would be some structural unemployment.

Question

Quizplus · Accepted Answer

Frictional unemployment would not be zero even at potential output, as it is a natural part of a healthy economy where workers are transitioning between jobs.

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