​Figure 53

question 57

True/False

​Figure 5.3. The figure shows the wage rate and the quantity of labor supplied in an unskilled labor market.
-The demand for health care is perfectly elastic.​

---

Definitions:

Cyclical Unemployment

The variation in unemployment caused by the ups and downs of economic cycles, including recessions and expansions.

Recessionary Gap

A situation where an economy's actual production is less than its potential output, often leading to unemployment and underused resources.

Potential Output

The level of productivity an economy can achieve with full employment and resources utilization, without causing inflation.

Natural Rate

The Natural Rate often refers to the natural rate of unemployment, where the unemployment rate is at a level expected in a fully efficient market without cyclical or short-term unemployment.