Questions: Full employment output is also called

The answer is the third one: potential output.

Explanation for each option:

1. Zero-unemployment output: This is incorrect. Full employment does not mean zero unemployment; it refers to the natural rate of unemployment, which includes frictional and structural unemployment.

2. Zero-savings output: This is incorrect. Full employment output is not related to savings levels; it refers to the level of output when the economy is operating at its full capacity.

3. Potential output: This is correct. Full employment output is also known as potential output, which is the level of output an economy can achieve when operating at full capacity, with all resources being used efficiently.

4. Equilibrium output: This is incorrect. Equilibrium output refers to the level of output where aggregate supply equals aggregate demand, which may not necessarily correspond to full employment output.

In summary, full employment output is best described as potential output.