If the economy is represented in the graph shown and is currently at point E2, what could be said about the state of the economy?
A. The unemployment rate is just about the natural rate.
B. There is lower unemployment than the natural rate.
C. The unemployment rate is zero.
D. There is higher unemployment than the natural rate.
Answer: D
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A country reports a potential GDP of $6 trillion, a natural unemployment rate of 4 percent and an expected inflation rate of 2 percent. Using Okun's Law, if the unemployment rate is 5 percent, what is real GDP?
What will be an ideal response?
Which of the following countries had a larger growth rate since 1960?
A) U.S. B) Senegal C) South Korea D) Kamul E) Colombia
The unemployment rate is usually zero except during recessions
a. True b. False
The unemployment compensation program:
A. makes recessions more severe. B. makes recession less severe. C. makes recessions more severe and inflationary episodes less severe. D. makes recessions less severe and inflationary episodes more severe.