Explain the relationship(s) between full employment, cyclical unemployment, the natural unemployment rate, and potential GDP

What will be an ideal response?

The economy is at full employment when there is no cyclical unemployment. The unemployment rate at full employment is called the natural unemployment rate. Because there is no cyclical unemployment, the natural unemployment rate is comprised of only frictional and structural unemployment. The level of output that the economy would produce if it was at full employment is called potential GDP.