If an economy is at equilibrium,it will also be operating at full employment.

Question

Quizplus · Accepted Answer

While equilibrium may indicate that the economy is operating efficiently, it does not necessarily mean that full employment has been reached. Full employment occurs when all available labor resources are being utilized, while equilibrium refers to a state of balance between supply and demand in the market. It is possible for an economy to be at equilibrium but still have unemployment due to factors such as structural or frictional unemployment.

If an Economy Is at Equilibrium,it Will Also Be Operating