What's it: Long-run macroeconomic equilibrium occurs when the aggregate demand curve intersects the short-run aggregate supply curve at the point of the long-run aggregate supply curve. In other words, the short-run macroeconomic
Full Employment
Why does full employment not mean 0 unemployment
Does full employment mean no unemployment? The answer is no. When the economy operates at full employment, unemployment remains. The unemployment rate is not zero. Why not zero percent? Only the cyclical unemployment rate is zero percent during
Full Employment: Meaning, Implication for Unemployment
What's it: Full employment means an economy is fully utilizing its productive resources. At this condition, the economy produces at its potential output, and the unemployment rate is at its natural rate. Is full employment means zero