Full employment means everyone in the labor force has a job.
Full employment is simply the lowest unemployment level possible consistent with price stability.

Question

Quizplus · Accepted Answer

Full employment does not mean everyone in the labor force has a job, as there may be some level of frictional or structural unemployment that cannot be fully eliminated. Instead, full employment refers to the lowest possible unemployment rate where inflation and price stability are still maintained.

Full Employment Means Everyone in the Labor Force Has a Job