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assume that the united states economy is operating below full employment a) define full employment -...

assume that the united states economy is operating below full employment a) define full employment - hint this is what economist call the natural rate of unemployment

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Full employment is when the economy is operating at an output level considered to be at full capacity i.e. it is not possible to increase real output because all resources are fully utilized. It is a situation when an economy is experiencing economic growth close to its long-run trend rate. It also means the economy is utilizing all input resources (labor, capital, land, etc.) to its fullest potential. At full employment, there will still be natural unemployment in the labor market.

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