Unemployment looms as a massive economic and social problem globally. Governments pursue the goal of stabilizing the unemployment situation. Development planning in developing countries and the political outcry in free-market industrial economies target unemployment as a major socioeconomic issue. The question to address then is to what extent the level of unemployment can be reduced, keeping in view the stable nature of economic relations.

Can all people who are actively looking for a job, as a percentage of the potential labor force, called labor force participation, be fully employed? If this were the economic and social goal, what consequences would there be on the side of the total value of goods and services with respect to a stable price level at a point in time? What ...