Full Employment: Definition, Types, and Examples
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What we call “full employment” is not a fixed concept. It changes historically, geographically, and politically. The idea that around 5% unemployment is normal comes from a very specific place: the United States. After the 1929 crisis, when U.S. unemployment reached almost 25%, and after World War II, the country stabilized itself as the main imperial power. From that moment on, American economic concepts stopped being local and started being exported to the rest of the world. But if you look at
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