An economy is at full employment when ________. A) the ...

[biggirl4568]

An economy is at full employment when ________.
 
  A) the unemployment rate is zero
  B) there is no frictional unemployment
  C) the unemployment rate equals the natural unemployment rate
  D) there is no structural unemployment

Question 2

Which of the following is TRUE regarding business cycles?
 
  I. Cycles are predictable.
  II. In each cycle, a peak follows an expansion.
  III. Potential GDP fluctuates around real GDP.
  A) I and II
  B) I and III
  C) II and III
  D) II only

[peilian]

Answer to Question 1

C

Answer to Question 2

D