I am having a hard time on understanding the concept. I have minimal knowledge on economics and I am seeking here for an explanation about this. Thank you people.
In: Economics
In classical economics full employment is a long run equilibrium between supply and demand and is basically independent of policy.
Keynesian full employment is the level of employment where additional demand side measure (ie the government buying stuff) will drive up prices but not employ more people.
Policy wise this is important: Keynes says that the government has a role pushing the economy to full employment, classical theory does not.
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