When Macroeconomics Refers to "Full Employment," What Do They Mean

question 13

Multiple Choice

When macroeconomics refers to "full employment," what do they mean?

• A) Full employment occurs when the unemployment rate equals zero.
• B) Full employment occurs when there is only frictional unemployment, and all other types of unemployment have been eliminated.
• C) Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated.
• D) Full employment occurs when there is only frictional unemployment, structural, and cyclical unemployment has been eliminated.

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Definitions:

Accounting Statements

Financial reports that provide a summary of a company’s financial condition, including income statement, balance sheet, and cash flow statement.

P/E Ratios

Price-to-Earnings Ratio, a measure of a company's current share price relative to its per-share earnings.

Quick Ratio

A financial metric that measures a company's ability to meet its short-term obligations with its most liquid assets.

Financial Statements

Formal records of the financial activities and position of a business, person, or entity, important for decision making.