The two fundamental causes of unemployment at full employment are

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At full employment, job search and job rationing are the two fundamental causes of unemployment. Job search refers to the time it takes for workers to find suitable employment, while job rationing refers to employers having more workers than available jobs due to the limited number of positions in the industry. Other factors such as technological change or decreases in labor productivity may lead to changes in employment levels, but they do not have as direct an impact on unemployment at full employment levels.

The Two Fundamental Causes of Unemployment at Full Employment Are