Question

module level learning objectives 21.1 calculate the labor force participation rate and the unemployment rate 21.1 explain hidden unemployment and what it means to be in or out of the labor force 21.2 explain historical patterns of unemployment in the u.s. 21.3 analyze cyclical unemployment 21.4 explain frictional and structural unemployment 21.4 assess relationships between the natural rate of employment and potential real gdp, productivity, and public policy course level learning objectives 3. define and measure national income and rates of unemployment and inflation. question 5 20 pts which of the following best describes an economy at full employment? there is frictional, but not cyclical, unemployment. the rate of unemployment is zero. there is only structural and cyclical unemployment. there is only cyclical unemployment. there is cyclical, but not structural, unemployment.

Explanation:

Full - employment in an economy does not mean zero unemployment. There will always be some frictional unemployment due to normal job - searching processes. Cyclical unemployment is related to business - cycle fluctuations. At full employment, the economy has eliminated cyclical unemployment. Structural unemployment may also exist even at full employment, but the key characteristic is the absence of cyclical unemployment.

Answer:

There is frictional, but not cyclical, unemployment.