View source for Full employment

==Desirability of Full Employment==

While economists generally consider it desirable for an economy to attain a state of full employment, as this ensures that available resources are being utilized nearly as efficiently as possible, full employment carries with it the risk of demand-pull [[inflation]] should [[aggregate demand]] increase once an economy has reached this point. This is due to the fact that [[output]] cannot be increased any further if [[demand]] continues to rise after full employment has been attained, and as a result, the price level must increase.
[[Category:Economics]]