Question

When we say an economy is at full employment, it doesn’t mean that there is zero unemployment. Explain why this statement is true.

Answer 1

This statement is true that an economy is at full employment ,still it does not mean that there is zero unemployment

Full employment means where there is close realation between those persons who are searcing job  and the number of employer searching workers.

Whlie zero unemployment is a theoretical concept because in pratical some of the worker have frictional unemployment.

Full employment does not mean zero unemployment or we can not say that everyone has job .so when we used full employment then it means we are tried to remove unemployment at the possible manner.or unemployment has fallen at lowest possible manner.full employment means a person is not voluntary unemployment.if he want to do job then there is working opportunity for him.so full employment means we have done maximum allocation of resource to achieving maximum level of output.