Chapter 17, Problem 22AA

To determine

To evaluate the distinction between full employment and zero unemployment.

Explanation of Solution

The distinction between full employment and zero unemployment is that full employment is an economic condition where anyone who wants a work has a work, whereas zero unemployment is a concept that applies to a condition where any person looking for a job may have a job. They also vary in the way economists view both of these situations. Where full employment is feasible, zero unemployment is virtually unlikely, and it requires fact that between 4 and 6 per cent of people will be unemployed at any time.

Economics Concept Introduction

Introduction: It applies to a market in which the number of people seeking employment and the number of employers seeking employees are closely in line.Zero unemployment can be conceived of as something more akin to a theoretical term than a possible fact, because about 2% of the workforce is still between jobs in an interim period, experiencing what is known as frictional unemployment.