The labor market equilibrium is an equilibrium where the economy is considered to be at full...

The labor market equilibrium is an equilibrium where the economy is considered to be at full employment. This occurs when:

a. The frictional unemployment rate is zero

b. The unemployment rate is zero

c. The structural unemployment rate is zero

d. The cyclical unemployment rate is zero

Solutions

Expert Solution

"D"

It will occur at the point where the cyclical unemployment i.e. the unemployment caused by lack of demand in the market is zero. The answer is "D".

Rahul Sunny answered 1 year ago

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