Full Employment Equilibrium : Efficient resource utilization :: Economic recession : ?

Full employment equilibrium is a situation where all resources, especially labor, are being used efficiently, meaning everyone who wants a job can find one. This is important because it leads to maximum productivity and economic growth. On the other hand, an economic recession occurs when the economy is not performing well, leading to higher unemployment and underutilization of resources. In this context, you can think of economic recession as a time when resources are wasted, similar to how a lack of full employment means that not all workers are being used effectively. For example, during a recession, businesses may close or cut back on hiring, leaving many people without jobs and hurting the overall economy.