Exhibit 16-4 -In Exhibit 16-4,the Natural Rate of Unemployment Is

question 17

Multiple Choice

Exhibit 16-4
-In Exhibit 16-4,the natural rate of unemployment is

• A)2 percent because it occurs at the intersection of the curves
• B)4 percent because it is the midpoint of the short-run curve
• C)4 percent because it is on the long-run curve
• D)8 percent because it is the most the economy can attain with high inflation
• E)10 percent because it is the most the economy can attain