-In the above figure, what does the line U represent?
A) the Phillips curve
B) the natural rate of unemployment
C) potential unemployment
D) full inflation rate of unemployment

Question

-In the above figure, what does the line U represent?
A) the Phillips curve 
B) the natural rate of unemployment 
C) potential unemployment 
D) full inflation rate of unemployment

Quizplus · Accepted Answer

The line U represents the natural rate of unemployment, which is the level of unemployment that the economy tends to return to in the long run, regardless of the inflation rate. It is not directly related to the Phillips curve, potential unemployment, or an inflation rate of unemployment.

-In the Above Figure, What Does the Line U Represent