Even an economy that is operating at peak efficiency will have a positive unemployment rate. Economists call this "full employment". Full employment is also known as The natural rate of unemployment frictional unemployment cyclical unemployment Structural unemployment

Even an economy that is operating at peak efficiency will have a positive unemployment rate. Economists call this "full employment". Full employment is also known as The natural rate of unemployment frictional unemployment cyclical unemployment Structural unemployment

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Even an economy that is operating at peak efficiency will have a positive unemployment rate. Economists call this "full employment". Full employment is also known as

		The natural rate of unemployment
		frictional unemployment
		cyclical unemployment
		Structural unemployment

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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