Their employment rate is 80 or higher they would

Info icon This preview shows pages 1–2. Sign up to view the full content.

their employment rate is 80% or higher they would consider themselves full employment. Also an economy can define their full employment by unemployment rate. They could have their acceptable level of unemployment rate above 10%. Even though not everyone in that economy is considered employed, they have still reached their acceptable level of full employment.
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

I believe full employed in related to natural rate of unemployment. Natural rate of unemployment is the rate of unemployment that is estimated to prevail in long-run macroeconomic equilibrium. Natural rate of unemployment is a combined of frictional unemployment and structural unemployment. Frictional unemployment is short lived, it is the time you are unemployed from going from one job to another. Structural unemployment is out of a job for a long period of time because the employer does of the skill due to improvements. As the natural rate of unemployment goes up the full employment will go up, and as the natural rate of unemployment goes down the full employment will go down. As one goes up or down the other will have the direct effect on the other. Frictional unemployment represents the amounts that are still in the labor force, but are currently unemployed due to being between different jobs. For example, a food illustration of frictional unemployment is when students graduate. After graduate then joint the labor force and are unemployment until they find work. This unemployment can be combined in the full employment rate a government may have. Due to frictional unemployment the full employment rate may never be reached.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern