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In the summer of 1995 (Q3-Third Quarter), the civilian unemployment rate was 5.7%. The target rate of unemployment (Natural Rate of Unemployment depicted in the

In the summer of 1995 (Q3-Third Quarter), the civilian unemployment rate was 5.7%. The target rate of unemployment (Natural Rate of Unemployment depicted in the graph above) estimated by the Congressional Budget Office was 5.28 % in the summer of 1995. Question: Which of the following examples are unemployment situations that can exist at the target rate of unemployment? Group of answer choices A large number of people are unemployed because real output is below potential output A large number of people are unemployed because aggregate demand is inadequate throughout the economy A large number of people are unemployed because they are moving between jobs to find better wages and working conditions A large number of people are unemployed because the economy is in a recession

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