Which Statement Is Likely to Be TRUE If Actual Output

question 173

Multiple Choice

Which statement is likely to be TRUE if actual output is equal to potential output?

• A) The actual unemployment rate is equal to the natural rate of unemployment.
• B) The actual unemployment rate is above the natural rate of unemployment.
• C) There will be zero unemployment.
• D) The natural rate of unemployment will be above the actual unemployment rate.

---

Definitions:

Annual Profit

The total earned income of a business over one year after all expenses have been subtracted.

Normal Model

Another term for the normal distribution, highlighting its role as a foundational model in statistics for randomized data.

Policies

Formal guidelines or principles that govern actions and decisions within organizations or systems.

Independent

A term used to describe two or more events that have no influence on each other's outcomes, or variables that do not show dependence.