If Output Is at Its Full-Employment Level, Then

Multiple Choice

If output is at its full-employment level, then

A) the actual unemployment rate is zero
B) the natural rate of unemployment is zero
C) there are no frictions in the labor market since wages have reached their market-clearing level
D) there is still some positive level of unemployment due to frictions in the labor market
E) nobody who is currently employed is looking for a new job