In the last half of 1999,the U.S.unemployment rate was about 4 percent.Historical experience suggests that this is
A)above the natural rate, so that real GDP growth was likely low.
B)above the natural rate, so that real GDP growth was likely high.
C)below the natural rate, so that real GDP growth was likely low.
D)below the natural rate, so that real GDP growth was likely high.

Question

Quizplus · Accepted Answer

When the unemployment rate is below the natural rate, it typically indicates that the economy is operating above its potential, leading to higher real GDP growth.

In the Last Half of 1999,the U