If the unemployment rate is 5 percent (full employment) ,our economy is operating

A) inside the production curve.
B) on the production curve.
C) outside the production curve.

Full Employment

Refers to the condition in an economy where all available labor resources are being used in the most efficient way possible, essentially meaning that there is no cyclical or involuntary unemployment.

Production Curve

The production curve, often referred to as the production possibility frontier, is a graph that shows the maximum number of goods or services that can be produced with a fixed amount of resources.