Read the two statements and choose the correct option.
I. At full employment, there are no frictional unemployed people.
II. At full employment, output cannot rise further in the short run.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

People changing jobs are always present. I is false.
With all willing workers employed, output is at its short-run limit. II is true.

Ten questions from Excess & Deficient Demand, at your own pace.

Ten questions from Excess & Deficient Demand, at your own pace.

Read the two statements and choose the correct option.I. At full employment, there are no frictional unemployed people.II. At full employment, output cannot rise further in the short run.