The level of output produced when the labor market is in equilibrium iscalled:a. natural output. b. target output. c. product market equilibrium output. d. full-employment output. e. global production output

The correct answer is letter "D": full-employment output.

Explanation:

Full-employment output or full-employment production is the situation when all available labor resources are used in their most efficient form, causing labor market equilibrium. Under this scenario, workers are in jobs where they are in their most productive use. Full employment takes into consideration highly-skilled and unskilled workers.