ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -True full employment is an ideal-and probably unachievable-situation in which anyone who is willing and able to work can find a job, and unemployment is zero. It is a theoretical goal for economic policymakers to aim for rather than an actually observed state of the economy.

Detailed explanation-2: -Disguised unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as ‘hidden unemployment’. In such a situation, more people are engaged in a work than optimally required.

Detailed explanation-3: -Full employment is the situation where all people who are available and searching for work can find a job at the prevailing remuneration rates and conditions. It does not mean zero unemployment-there are always some who may be temporarily unemployed, as they move from one job to the other or for other reasons.

Detailed explanation-4: -Unemployment is the term for when a person who is actively seeking a job is unable to find work.

Detailed explanation-5: -The natural rate of unemployment (NRU) is the unemployment rate that exists when the economy produces full-employment real output. NRU is equal to the sum of frictional and structural unemployment.