The phase of full employment of trade cycle: The cumulative process of recovery continues until the economy reaches full employment. Full employment implies that all the available men arc employed. The economy has reached the optimum level of economic activity. During this phase, there is an allround economic stability referring to stability of output, wages, prices and income. Wages, interests and profits are high, output is highest with the given technology and employment is maximum. There may be small percentage of unemployment, but it is not of an involuntary type but of voluntary and frictional type. The period of full employment has become the usual goal of most national economic policies.
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