When the Economy Is Operating at an Unemployment Rate Below

question 169

Multiple Choice

When the economy is operating at an unemployment rate below the full employment rate,

• A) actual output is above potential output
• B) actual output equals potential output
• C) actual output is below potential output
• D) frictional unemployment has been eliminated
• E) structural unemployment has been eliminated

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Definitions:

Japanese Yen

The official currency of Japan, represented symbolically as ¥ and known as one of the major currencies traded in the world.

South Korean Won

The official currency of South Korea, symbolized as KRW.

Full Employment

A situation in an economy where all available labor resources are being used in the most efficient way possible, typically characterized by very low unemployment.

Depreciates

Describes a decrease in value over time, often used in reference to currency or physical assets.