Price level rises, output stays the same. Price level falls, output stays the same. Price level falls, output increases. Price level rises, output falls. Hume's thought experiment.
Full employment is a conclusion that follows from the flexible price assumption.
It is not itself an assumption. In terms of a Production Possibilities Curve, the flexible price assumption implies that the economy is always on the frontier. Recall that when on the frontier, you have to give up some of one good to get more of another. Make a list of all of the items you need to have an informative measure. Choose reasonable weights for each item.