Write short notes on the following:
Concept of full employment.

Concept of Full Employment. Full employment refers to a situation when every able bodied person who is willing to work at the prevailing rate of wages is, in fact, employed. Alternatively, it is a situation when there is no involuntary unemployment. That is why full employment is also defined as a situation where there is no involuntary unemployment. It needs to be understood although full employment means a situation when all resources in the economy – land, labour, capital, etc. – are fully employed but for simplicity meaning of full employment is restricted to labour market only, i.e., a situation when all able persons who are willing to work at the prevailing wage rate find jobs. Every economy in the world aims at achieving the level of full employment equilibrium where all its available resources are fully and efficiently employed because it leads to maximum level of output produced by the economy.
In reality full employment never exists because it is always possible to find some people unwilling to do any productive work though they may be fit physically and mentally. Also some people remain temporarily without jobs over short period when they try to change employment from one job to another (called frictional unemployment) or when new machines are introduced or when a plant may break down (called structural unemployment). Thus frictional, structural and voluntary unemployment can co-exist within the state of full employment. In short, full employment does not stand for zero unemployment.
Classical economists and Keynes, view full employment in different ways. According to Classicals full employment is a situation where there is no involuntary unemployment. But according to Keynes full employment indicates that level of employment where increase in aggregate demand does not lead to increase in level of output and employment.