..........level of income is that level of income where all the factors of production are fully employed in the production process.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Full employment.
The full employment level of income refers to the level of national income or output at which all factors of production — labour, land, capital, and enterprise — are fully and efficiently employed in the production process.
At this level:
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There is no involuntary unemployment in the economy.
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The economy produces its potential output or maximum sustainable level of income.