If the economy is producing ________, unemployment is at its natural rate.

Name: If the economy is producing ________, unemployment is at its natural rate.
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Question

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When the economy is producing at its potential GDP, it is operating at full employment, which means unemployment is at its natural rate. This is the level of unemployment that exists when the economy is producing at its potential and there are no cyclical or frictional factors causing temporary unemployment.

If the Economy Is Producing ________, Unemployment Is at Its