1. Full employment in Europe is feasible To achieve full employment, Europe needs more innovative businesses, better functioning employment services and relevant labor market training programs....

1. Full employment in Europe is feasible To achieve full employment, Europe needs more innovative businesses, better functioning employment services and relevant labor market training programs. Source: IZA Newsroom, 13 July 2013

Think about full employment in Europe: If Europe is operating below full employment, is it operating on its production function? If Europe is operating below full employment, what is the relationship between the unemployment rate and the natural unemployment rate?

If Europe is operating at full employment, and then the full-employment quantity of labor increases, what happens to the production function? Does an increase in the full-employment quantity of labor eliminate diminishing returns?