AP MacroeconomicsUnemployment & Inflation
Full Employment
Full employment is the level of employment where there is no cyclical unemployment.
Full employment occurs when the economy is operating at its potential output, and there is no cyclical unemployment. However, full employment does not mean that everyone has a job, as there will still be some frictional and structural unemployment. Policymakers often aim to achieve full employment while keeping inflation under control.
Interactive graph
AD/AS Model →
Drag the curves and see it for yourself.
Study module
Unemployment & Inflation →
Full lesson, practice questions, and flashcards.