Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of: Group of answer choices A) structural, frictional, and cyclical unemployment. B) structural and frictional unemployment. C) cyclical and frictional unemployment. D) structural and cyclical unemployment.

Question

Melissa Chen

Business

5 July, 18:28

Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of: Group of answer choices A) structural, frictional, and cyclical unemployment. B) structural and frictional unemployment. C) cyclical and frictional unemployment. D) structural and cyclical unemployment.

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Answers (1)

Know the Answer?

Elliot Waller · Answer 1

The correct answer is option B.

Explanation:

Full employment is considered as the situation all the available resources are efficiently utilized. But it is actually the level where only natural unemployment exists.

The natural rate of unemployment involves structural, frictional, and voluntary unemployment. Though it does not include cyclical unemployment.

Full-employment is the ideal employment rate for the economy.