What is the typical unemployment rate associated with full employment?

The typical unemployment rate associated with full employment is generally considered to be in the range of 4% to 6%. This range reflects what economists call "natural unemployment," which includes frictional unemployment—the short-term unemployment that occurs when people are between jobs—and structural unemployment, which results from mismatches between workers’ skills and job requirements.

At this level of unemployment, the economy is viewed as being at or near its full potential, meaning that most individuals who are willing and able to work are employed. It's important to note that this does not mean zero unemployment; there will always be a certain level of unemployment present as people transition between jobs or as industries evolve and change.

Lower unemployment rates, like those suggested in the other options, often indicate an overheating economy, which can lead to inflationary pressures as demand for labor outstrips supply. Therefore, the 4% to 6% range is widely accepted as a realistic and healthy target for unemployment in a well-functioning economy.