Which of the following statements best describes the relationship between the natural rate of unemployment and full employment equilibrium as indicated by economic indicators?

The natural rate of unemployment is the level of unemployment that exists when the economy is at full employment, meaning that all those who are willing and able to work can find jobs. Full employment equilibrium does not mean zero unemployment; instead, it includes frictional and structural unemployment, which are normal parts of a healthy economy. For example, when recent graduates are looking for their first job or when workers are transitioning between jobs, this creates some level of unemployment that is expected and acceptable. Economic indicators like the unemployment rate help us understand how close an economy is to this full employment equilibrium. Therefore, a low unemployment rate close to the natural rate suggests that the economy is performing well, while a higher rate may indicate issues that need to be addressed.