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