Serejaramillo1552 Serejaramillo1552

Today at 9:08 AM
Business

Answered

If the natural unemployment rate is 7 percent and the current unemployment rate is 5 percent, then the economy is

Answer :

andromache andromache

Today at 9:14 AM

Answer:

a. producing more Real GDP than it does at full employment.

Explanation:

Since in the given question it is mentioned that the natural unemployment is 7% and the current unemployemnt rate is 5%

So based on the above information when the present unemployment rate is lesser than the natural unemployment rate this implies that the economy is generating the more output as compared with the potential level

Therefore the correct option is a.

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