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.
d
You might also like to view...
The best explanation of why the aggregate demand curve has a negative slope is that
A) at a higher price level households cut back on their spending on goods and services. B) at a higher price level business firms wish to produce more goods and services. C) a higher price level results in lower real balances and a higher real interest rate. D) a higher price level results in less government spending on transfers, such as unemployment insurance and social security payments.
In 2011, U.S. governments (local, state, and Federal) employed roughly how many percent of the U.S. labor force?
A. 5 percent B. 16 percent C. 42 percent D. 64 percent