If the Unemployment Rate for the Canadian Economy Rises from 7

question 141

Multiple Choice

If the unemployment rate for the Canadian economy rises from 7% to 11% during a year,we can conclude that

• A) actual GDP exceeds potential GDP.
• B) actual GDP is less than potential GDP.
• C) the economy is experiencing only frictional unemployment.
• D) the natural rate of unemployment for the Canadian economy has risen.
• E) the economy is experiencing only structural unemployment.