Which factor is NOT included in the definition of full employment?

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Full employment is defined as the condition in which all available labor resources are being used in the most efficient way possible. In this context, it includes natural levels of employment that arise from frictional and structural unemployment.

Frictional unemployment occurs when individuals are temporarily unemployed while transitioning from one job to another, which is a normal part of a dynamic economy. Structural unemployment arises from mismatches between workers' skills and the requirements of available jobs, often due to technological changes or shifts in the economy.

Cyclical unemployment, on the other hand, is associated with the downturns of the business cycle and reflects periods when there is insufficient aggregate demand for goods and services. It is considered indicative of economic instability and does not fit into the definition of full employment since full employment implies that the economy is operating at or near its full potential output. Thus, including cyclical unemployment would mean that the economy is not truly at full employment.

Therefore, the factor that is not included in the definition of full employment is cyclical unemployment.

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