Meaning of Full Employment
Full employment refers to a situation in which every able bodied person who is willing to work at the prevailing wage rate, is employed. In other words full employment means that persons who are willing to work and able to work must have employment or a job; Keynes defines full employment as the absence of involuntary unemployment.
Lerner defines full employment as “that level of employment at which any further increase in spending would result in an inflationary spiral of wages and prices”.
Every economy in the world aims at attaining the level of full employment equilibrium where all its available resources are fully and efficiently employed to achieve maximum level of output. But in reality, the concept of full employment generally refers to full employment of labour force of a country.
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