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

question 27

Multiple Choice

When macroeconomists 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 cyclical 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:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the taxable income.

Warranty Liability

An obligation reported on a company's balance sheet that represents the estimated costs of fulfilling the terms of warranties offered on products sold.

Deferred Tax

The amount of income tax payable/recoverable in future reporting periods in respect of temporary differences and tax losses.

Balance Date

The date on which a company's financial year ends and financial statements are prepared to reflect the company's financial position.