Asked by Courtnie Marie on May 16, 2024
Verified
Full employment implies that
A) the economy has no frictional unemployment.
B) the unemployment rate is zero.
C) the economy has no structural unemployment.
D) None of the choices are true.
Full Employment
A situation where all available labor resources are being used in the most efficient way possible, leading to no cyclical unemployment.
Frictional Unemployment
Short-term unemployment that arises from the process of workers moving between jobs or into the workforce.
Structural Unemployment
A form of unemployment caused by a mismatch between the skills that workers in the economy can offer and the skills demanded by employers.
- Gain insight into the definitions of several unemployment types and the methodologies employed in their assessment.
Verified Answer
LT
Leana ToiracMay 19, 2024
Final Answer :
D
Explanation :
Full employment does not imply a zero unemployment rate; rather, it acknowledges the existence of frictional and structural unemployment. It means the economy is operating at its maximum sustainable employment level, where only cyclical unemployment is absent.
Learning Objectives
- Gain insight into the definitions of several unemployment types and the methodologies employed in their assessment.