Author Question: Which of the following is true? a. At the natural rate of unemployment, the economy is considered ... (Read 443 times)

HCHenry · **on:** Jun 30, 2018

Which of the following is true?
a. At the natural rate of unemployment, the economy is considered to be at full employment.
b. At full employment, the economy is producing at its potential output.
c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output.
d. All of the above are true.

Question 2

Which of the following is true?
a. At below the natural rate of unemployment, the economy is considered to be beyond full employment.
b. At below full employment, the economy is producing more than potential output.
c. At below full employment, unemployment would be below its natural rate.
d. All of the above are true.