Question

When the economy is at full employment, which types of unemployment remain?

A) Frictional and structural unemployment
B) Cyclical and structural unemployment
C) Frictional and cyclical unemployment
D) Only frictional unemployment

Answer 1

Frictional and structural unemployment remain when the economy is at full employment.

Step-by-step explanation:

When the economy is at full employment, the types of unemployment that remain are frictional and structural unemployment. Frictional unemployment refers to the temporary unemployment that occurs when workers are transitioning between jobs or entering the workforce for the first time. Structural unemployment, on the other hand, is caused by mismatches between the skills or qualifications of workers and the available jobs in the economy.