Which of the following is true? a. Full employment does not mean there is a "zero" percent unemployment rate. b. Full employment is the situation in which an economy operates at an unemployment rate equal to the sum of the frictional and structural unemployment rates. c. Full employment exists when there is no cyclical unemployment. d. The GDP gap measures the monetary losses of real goods and services to the nation from operating at less than full employment e. All of the above answers are correct.

Respuesta :

In economics, full employment does not mean that 100% of the labor pressure is employed. Even when the actual GDP is at viable GDP, frictional and structural unemployment exists in the economy. Therefore, full employment is when cyclical unemployment is zero.

Does full employment suggest zero employment?

Full employment embodies the best possible amount of knowledgeable and unskilled labor that can be employed inside an financial system at any given time. True full employment is an ideal—and probable unachievable—situation in which all and sundry who is willing and able to work can locate a job, and unemployment is zero.

Economists estimate that the full employment charge is between 94 and ninety six percent (meaning the unemployment charge is from 4 to 6 percent). Some unemployment is inevitable – even healthy.

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