Economists Define Full Employment as the Level of Employment That

question 9

Multiple Choice

Economists define full employment as the level of employment that results when

• A) the economy is in an economic boom.
• B) the rate of unemployment is zero.
• C) the rate of unemployment has fallen to its historical low of approximately two percent.
• D) the rate of unemployment is normal, considering both frictional and structural factors.

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Definitions:

Bond

An interest-bearing security that obligates the issuer to pay the bondholder a specified sum of money, generally at fixed intervals, and to repay the principal at maturity.

Maturity Date

The due date on which a loan or bond must be completely paid off, including principal and interest.

Interest Earned

The amount of income generated from an investment or the amount of interest accumulated on a financial asset over a period of time.

Bond Payable

A long-term debt instrument issued by a company, promising to pay the holder a specified amount of interest over a set period and to repay the principal on the bond's maturity date.