The economy in the diagram below begins in long-run equilibrium at E0.
FIGURE 30-2
-Refer to Figure 30-2. At E0, the unemployment rate is 5.6%. Therefore,
1) the NAIRU is 5.6%;
2) cyclical unemployment is 5.6%;
3) the economy is at full unemployment.

Question

The economy in the diagram below begins in long-run equilibrium at E0.
  FIGURE 30-2
-Refer to Figure 30-2. At E0, the unemployment rate is 5.6%. Therefore,
1) the NAIRU is 5.6%;
2) cyclical unemployment is 5.6%;
3) the economy is at full unemployment.

Quizplus · Accepted Answer

The Answer of The economy in the diagram below begins in long-run equilibrium at E0.
  FIGURE 30-2
-Refer to Figure 30-2. At E0, the unemployment rate is 5.6%. Therefore,
1) the NAIRU is 5.6%;
2) cyclical unemployment is 5.6%;
3) the economy is at full unemployment.

The Economy in the Diagram Below Begins in Long-Run Equilibrium