If the economy were at its potential output level,which of the following would not be true?
A)The actual unemployment rate would be greater than the natural rate.
B)The labor market would be in equilibrium.
C)There would be some seasonal unemployment.
D)There would be some frictional unemployment.
E)There would be some structural unemployment.

Question

Quizplus · Accepted Answer

If the economy were at its potential output level, the actual unemployment rate would be the natural rate of unemployment. Therefore, it would not be greater than the natural rate.

If the Economy Were at Its Potential Output Level,which of the Following