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Is It Possible for the Economy to Be at Full

Question 3

Multiple Choice

Is it possible for the economy to be at full employment and still have some people who are unemployed?


A) No,full employment means that no one is unemployed.
B) Yes,since full employment exists if the economy is operating at the natural unemployment rate and there is always some natural unemployment.
C) Yes,since full employment exists if the economy is operating at the frictional unemployment rate and there is always some frictional unemployment.
D) Yes,since full employment equals the sum of the cyclical unemployment rate and the natural unemployment rate,and there is always some cyclical unemployment.
E) none of the above

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