Question

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.

Answer 1

The correct answer is option B.

Step-by-step 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.