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Full Employment

Full employment refers to a situation in which all available labour resources in an economy are being used, and there is no significant surplus of unemployed workers. In other words, everyone who wants to work has a job, and employers are unable to find additional workers to fill open positions.

In an economy with full employment, the unemployment rate is typically considered to be around 4-5% (the "natural rate of unemployment"). This is because some level of unemployment is always present in an economy, as workers transition between jobs or enter or leave the labor force.

Full employment is considered an important goal of macroeconomic policy, as it is associated with high levels of economic activity and low levels of poverty and inequality. However, achieving full employment is difficult, as it requires a delicate balance between economic growth and inflation, and may be impacted by factors such as technological change and globalization.

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