Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is 150; discouraged workers = 75; employed workers = 750; underemployed workers = 200.  Use this information to answer the following 5 questions. Refer to Scenario 1.  Is the economy at full employment?   Question 15 options:   a)  Yes, because the unemployment rate is below 10%   b)  No, because the unemployment rate exceeds the natural rate of unemployment   c)  No, because cyclical unemployment exists in the economy

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
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Scenario 1. 
Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is 150; discouraged workers = 75; employed workers = 750; underemployed workers = 200. 
Use this information to answer the following 5 questions.

Refer to Scenario 1.  Is the economy at full employment?
 

Question 15 options:

 

a) 

Yes, because the unemployment rate is below 10%
 

b) 

No, because the unemployment rate exceeds the natural rate of unemployment
 

c) 

No, because cyclical unemployment exists in the economy
 

d) 

Answers B and C are both correct
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