Full employment is the level at which there is no cyclical unemployment. Cyclical unemployment refers to the portion of unemployment that is caused by a downturn in the business cycle or economic recession. It is the type of unemployment that occurs when there is a decrease in aggregate demand for goods and services in the economy.

Explanation:
1. Full Employment:
Full employment refers to a situation where all individuals who are willing and able to work at the prevailing wage rate are employed. In this state, there is no involuntary unemployment, which means that everyone who wants a job has one.

2. Cyclical Unemployment:
Cyclical unemployment, also known as demand-deficient unemployment, occurs when there is a downturn in the business cycle. During a recession or economic downturn, businesses typically experience a decline in demand for their products or services. As a result, they may lay off workers to reduce costs and adjust to the decrease in demand.

3. Relationship Between Full Employment and Cyclical Unemployment:
Full employment does not mean there is an absence of all types of unemployment. It only refers to the absence of cyclical unemployment. This means that even in a state of full employment, there may still be other types of unemployment, such as frictional and structural unemployment.

4. Frictional Unemployment:
Frictional unemployment occurs when individuals are between jobs or are searching for better employment opportunities. It is considered a temporary and voluntary form of unemployment, as individuals are actively seeking employment but have not yet found a suitable job.

5. Structural Unemployment:
Structural unemployment is caused by a mismatch between the skills and qualifications of workers and the available job opportunities. It occurs when there is a change in the structure of the economy, such as technological advancements or shifts in consumer preferences, which render certain skills obsolete or less in demand.

Conclusion:
In conclusion, full employment is the level at which there is no cyclical unemployment. It does not imply the absence of all types of unemployment, such as frictional or structural unemployment. Cyclical unemployment is specifically related to the business cycle and occurs during economic downturns. Achieving full employment requires policies and measures to stimulate aggregate demand and ensure a stable and growing economy.