Asked by Cheska Lopez on May 16, 2024
Verified
When an economy is operating at full employment,_____.
A) structural unemployment does not exist
B) cyclical unemployment does not exist
C) the unemployment rate is zero
D) seasonal unemployment does not exist
E) the number of discouraged workers is zero
Full Employment
A situation in an economy where all available labor resources are being used in the most efficient way possible, typically with low unemployment.
Cyclical Unemployment
The component of overall unemployment that results from economic recessions or expansions, directly correlating with the cyclical trends in the growth of the economy.
Structural Unemployment
Employment decline due to the transformation of the industrial landscape, primarily influenced by technological progress, rather than changes in demand or supply dynamics.
- Discern the relationship that exists between economic cycles and the classifications of unemployment.
- Comprehend the idea of full employment and its importance in the economic context.
Verified Answer
SH
Shelton HardyMay 22, 2024
Final Answer :
B
Explanation :
Cyclical unemployment does not exist when an economy is operating at full employment, as cyclical unemployment is associated with economic downturns. Full employment typically means the economy is producing at its potential, and any remaining unemployment is not due to a lack of demand.
Learning Objectives
- Discern the relationship that exists between economic cycles and the classifications of unemployment.
- Comprehend the idea of full employment and its importance in the economic context.