6. As the unemployment rate in Greece rose to 28 percent, 61.4 percent of those under the age of 25 were jobless in November 2013. However, there are some signs of recovery in retail sales, manufacturing activity and construction, and slight economic growth is expected in 2014.41

a. Is the unemployment rate of 28 percent likely to be Greece’s natural rate of unemployment?

b. How do you expect Greece’s unemployment rate to change with the economic growth in 2014?

c. If the economy in 2014 turns out to have a negative growth, under what circumstances will the unemployment rate in Greece possibly fall?