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Economics

Can u explain me 1st assumption sir... Y total number of goods nd services doesn't change im case of full employment? Is it bcz if u need to produce mre u need to recruit new employees?

Shru Kanda

CA Inter

★ 610

20-May-20 16:15

461

Answers (2)

Full employment is an economic situation in which all available labor resources (Skilled & unskilled) are being used in the most efficient way possible. True full employment is an idealâ??and probably unachievableâ??situation in which anyone who is willing and able to work can find a job, and unemployment is zero. It is a theoretical goal. So if the employment is already full, further addition of labour (factor of production) is not possible hence production cannot be increased.