Asked by Torye Smith on May 19, 2024
Verified
Which of the following does not exist when an economy is operating at full employment?
A) An unemployment rate of 5 percent or 6 percent
B) Seasonal unemployment
C) Structural unemployment
D) Cyclical unemployment
E) Frictional unemployment
Full Employment
An economic situation where all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.
Cyclical Unemployment
Unemployment that rises during economic downturns and falls when the economy improves.
Seasonal Unemployment
Joblessness linked to seasonal variations in demand or supply of labor in certain industries.
- Comprehend the association between cycles in the economy and unemployment categories.
Verified Answer
TS
Tanya SainiMay 23, 2024
Final Answer :
D
Explanation :
Cyclical unemployment occurs when there is a downturn in the economy and is not present when the economy is operating at full employment. At full employment, all individuals who want to work and are able to work have jobs, resulting in a low unemployment rate. Additionally, seasonal, structural, and frictional unemployment may still exist even when the economy is at full employment.
Learning Objectives
- Comprehend the association between cycles in the economy and unemployment categories.