Full Employment Exists When

question 264

Multiple Choice

Full employment exists when

• A) there is only frictional and structural unemployment.
• B) the economy is at the natural unemployment rate.
• C) there is no cyclical unemployment.
• D) All of the above answers are correct.

---

Definitions:

False Consensus Effect

A cognitive bias whereby individuals overestimate the extent to which their beliefs, feelings, or behaviors are shared by others.

Innovation Process

A sequence of actions involving the creation, advancement, and execution of novel concepts or items.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, or solving problems.

Amabile's Components

Refers to Teresa Amabile's theory that innovation requires expertise, creative-thinking skills, and intrinsic task motivation.