The full-employment level of employment is: A. the level of employment when aggregate demand is equal to short-run aggregate supply. B. the level of employment where there is no structural or frictional unemployment. C. the equilibrium level of employment reached after all wages and prices have fully adjusted.

The correct answer is letter "C": the equilibrium level of employment reached after all wages and prices have fully adjusted.

Explanation:

Full Employment is a situation in which all available human resources are utilized at their highest degree. Each worker is in a job where that worker has his or her more productive use and benefit to the aggregate economy. Full employment is usually achieved in a robust economy when employment reaches its equilibrium point after wages and price adjustments, but can potentially be achieved in any economy.

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