PrepTest 51, Section 2, Question 23
Constance: The traditional definition of full employment as a 5 percent unemployment rate is correct, because at levels below 5 percent, inflation rises.
Constance: The traditional definition of full employment as a 5 percent unemployment rate is correct, because at levels below 5 percent, inflation rises.
Brigita: That traditional definition of full employment was developed before the rise of temporary and part-time work and the fall in benefit levels. When people are juggling several part-time jobs with no benefits, or working in a series of temporary assignments, as is now the case, 5 percent unemployment is not full employment.
Constance: The traditional definition of full employment as a 5 percent unemployment rate is correct, because at levels below 5 percent, inflation rises.
Brigita: That traditional definition of full employment was developed before the rise of temporary and part-time work and the fall in benefit levels. When people are juggling several part-time jobs with no benefits, or working in a series of temporary assignments, as is now the case, 5 percent unemployment is not full employment.
Constance: The traditional definition of full employment as a 5 percent unemployment rate is correct, because at levels below 5 percent, inflation rises.
The dialogue most strongly supports the claim that Constance and Brigita disagree with each other about which one of the following?
what definition of full employment is applicable under contemporary economic conditions
whether it is a good idea, all things considered, to allow the unemployment level to drop below 5 percent
whether a person with a part-time job should count as fully employed
whether the number of part-time and temporary workers has increased since the traditional definition of full employment was developed
whether unemployment levels above 5 percent can cause inflation levels to rise
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