In Canada, full employment means that there is ______ percent unemployment.Multiple choice question.5-7More than 7zero1-3

To determine the correct answer for the unemployment rate that signifies full employment in Canada, we must consider the natural rate of unemployment, which includes frictional and structural unemployment.

Analyzing the Options

1. 5-7 Percent: This range is often considered the typical threshold for full employment, as it allows for job seekers and changes in the economy.
2. More than 7 Percent: This would indicate that the economy is not at full employment since higher unemployment suggests economic distress.
3. Zero: This is unrealistic in any economy due to normal job turnover.
4. 1-3 Percent: This is lower than most estimates of full employment, which typically acknowledges some level of unemployment.

Conclusion

In Canada, the accepted range for full employment typically falls between 5% to 7% unemployment. Therefore, the correct answer is 5-7 percent unemployment.