Full employment is not zero unemployment because
A) there are statistical errors when determining the unemployment rate that cannot be overcome.
B) there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force.
C) there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics.
D) government workers are not counted in the labor force.
B
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Indicate whether the statement is true or false
In response to the recession of 2008-2009, the fiscal policy of the federal government was
a. highly expansionary, and this Keynesian stimulus promoted a rapid recovery. b. highly expansionary, but this was largely offset by the Fed's restrictive monetary policy c. highly restrictive, but this was largely offset by the Fed's highly expansionary monetary policy d. highly expansionary, but the unemployment rate nonetheless remained high during 2010 and 2011