CFA Practice Question

CFA Practice Question

Which of the following is correct?
A. The 'natural rate of unemployment' is the rate of unemployment expected when an economy is operating at full capacity.
B. Unemployment numbers include workers who were laid off in the past month, and are no longer seeking employment.
C. 'Full Employment' is when 100% of the labor force is employed.
Explanation: Full employment is the amount of employment when unemployment is 'normal', taking into account structural and frictional factors. Those workers not seeking work are not counted in unemployment numbers.

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User Comment
Mikehuynh Natural rate of unemployment = structural + frictional
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