If the Current Unemployment Rate Is Equal to the Natural

question 125

Multiple Choice

If the current unemployment rate is equal to the natural unemployment rate,then current Real GDP is

• A) greater than Natural Real GDP.
• B) equal to Natural Real GDP.
• C) equal to the Real GDP produced at full employment.
• D) less than Natural Real GDP.
• E) b and c

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Definitions:

Consumer Goods

Products intended for final use by consumers rather than further manufacturing or processing.

Future Growth Rate

An estimate of how fast an economy, company, or investment is expected to grow in the future.

Division of Output

The allocation or distribution of the total goods and services produced among different sectors, markets, or consumers.

Marginal Benefits

The additional benefits received from consuming one more unit of a good or service.