In May 2017, an article in the New York Times had the headline: “We’re Getting Awfully Close to Full Employment.” The article contained the following observation: “The socalled U-6 rate . . . fell to 8.6 percent in April from 8.9 percent [in March].”
a. What is the U-6 unemployment rate? Why do economists and policymakers track changes in this measure of the unemployment rate?
b. What is full employment? If the U.S. economy was close to full employment in May 2017, why was the U-6 measure of the unemployment rate still as high as 8.6?