The full- employment level of output can only be achieved when the unemployment rate is zero.

Name: The full- employment level of output can only be achieved when the unemployment rate is zero.
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While a zero unemployment rate would indicate a very tight labor market, there may still be some level of underemployment or individuals who are not seeking employment for various reasons. Therefore, achieving full-employment level of output may not necessarily require a completely zero unemployment rate.

The Full- Employment Level of Output Can Only Be Achieved