Cyclical unemployment occurs when the economy goes into recession. Workers are laid off and unemployment rises. After reaching the trough, recovery begins and workers are hired back. Only frictional and structural unemployment exist. Cyclical unemployment reaches its maximum at the trough.
Full employment exists when only frictional and structural unemployment exist.
Occurs at the peak of the business cycle. Full employment GDP is the equivalent of operating on or very near the production possibilities curve. Structural unemployment increases during times of technological innovation as old tech jobs are replaced by new tech jobs. This will cause bidding up wages, rising costs, and inflation. Inflation Inflation is a continuing rise in the general level of prices.