Question
A country's current unemployment rate is 11 percent. Economists estimate that its natural rate of unemployment is 5 percent. You can conclude that this economy
A country's current unemployment rate is 11 percent. Economists estimate that its natural rate of unemployment is 5 percent. You can conclude that this economy is currently operating____________ and its actual real GDP Y is ____________ than the potential real GDP Y*.
A) Above its PPF; greater. B) Below its PPF; less
C) Along its PPF; equal to. D) Along its PPF; greater
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
