Full employment refers to, absence of involuntary unemployment.

Question: Full employment refers to, absence of involuntary unemployment.

The correct answer is –  The statement is generally true. Full employment generally refers to a situation in which there is no involuntary unemployment, which means that all individuals who are willing and able to work at the prevailing wage rate can find employment. In such a situation, the unemployment rate is at its natural rate, which is the minimum level of unemployment that can be achieved without generating inflationary pressures. However, it is worth noting that there may still be some degree of frictional or voluntary unemployment, which arises from the time lag between individuals searching for jobs and finding suitable employment opportunities.