Which of the following allows an economy to operate beyond its full employment level?

Multiple choice question.

Operating with high unemployment

Operating with zero unemployment

Employing otherwise normally unemployed workers

Employing a high amount of immigrant labor

1 answer

The correct answer is:

Employing otherwise normally unemployed workers

This option refers to utilizing individuals who may not typically be part of the workforce due to various reasons (like lack of skills or experience, discouragement, etc.) but can be employed without causing inflationary pressures. This can allow an economy to operate at or even beyond its potential output without creating significant inefficiencies or inflation, unlike the other options listed.