Which aspect is a sign of a healthy economy regarding unemployment?

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Full employment is a key indicator of a healthy economy. It refers to a situation where all individuals who are willing and able to work can find employment. This doesn't mean that the unemployment rate is zero, as there will always be some level of frictional unemployment (people transitioning between jobs or entering the workforce for the first time) and structural unemployment (mismatch between workers’ skills and job requirements).

In a healthy economy, the unemployment rate is typically low, and the majority of the labor force is engaged in productive work. Full employment is often characterized by an economy that is operating at or near its productive capacity, leading to more robust economic growth, increased consumer spending, and overall higher levels of demand for goods and services. The presence of full employment indicates that resources are being utilized efficiently, reflecting a stable environment where economic activity can thrive.

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