8. Use Exhibit 8 to answer the questions below. a. Which points represent the natural unemployment rate?
Question:
8. Use Exhibit 8 to answer the questions below.
a. Which points represent the natural unemployment rate?
b. Which points represent an unemployment rate below the natural unemployment rate?
c. Which points represent an unemployment rate above the natural unemployment rate?
d. Explain points A and D on the graph.
e. Explain points B and C on the graph.
f. Explain points E and F on the graph.
g. Why is curve PC2 to the right of curve PC1?
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