Why is zero percent unemployment not considered ideal by economists?
A. It means no one wants to work
B. It results in lower GDP
C. It ignores natural frictional and structural unemployment
D. It causes inflation to drop too low

Question

Sefton · Answer

The correct answer is letter C. Economists accept that some level of unemployment is normal, such as when people are between jobs (frictional) or retraining (structural). A 0% unemployment rate is unrealistic and may even harm the economy by removing flexibility in the labor market.

Answered by Sefton | 2025-05-22

Why is zero percent unemployment not considered ideal by economists? A. It means no one wants to work B. It results in lower GDP C. It ignores natural frictional and structural unemployment D. It causes inflation to drop too low

Answer (1)

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Why is zero percent unemployment not considered ideal by economists?
A. It means no one wants to work
B. It results in lower GDP
C. It ignores natural frictional and structural unemployment
D. It causes inflation to drop too low

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