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)There would be some frictional unemployment.
E)Structural unemployment would be equal to zero.

Question

Quizplus · Accepted Answer

Structural unemployment would not be zero even at potential output, as it is a natural part of the economy due to mismatches between skills and jobs.

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