Full employment means A. there is "normal" frictional unemployment and a small amount of cyclical unemployment. B. everyone in the labor force has a job. C. there is a level of unemployment consistent with "normal" frictions in the labor market. D. everyone has a job.

The correct answer is C. there is a level of unemployment consistent with "normal" frictions in the labor market.

Explanation:

Full employment is a situation where all the individuals in a country, who are able to work and who want to do so, are effectively working either as employees of a company or organization or creating their own.

When full employment occurs, labor demand equals supply so that the labor market is in perfect balance. This means that in a country with full employment, all workers who belong to the active population and look for work, find it. However, as we will see below, when there is full employment there are certain unemployed people, it is what is known as frictional unemployment.

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