When the actual unemployment rate is equal to the natural unemployment rate, then the
A)economy is operating at potential GDP.
B)inflation rate is zero.
C)the money wage rate will rise.
D)short- run aggregate supply curve is vertical.
E)long- run aggregate supply curve is upward sloping.

Question

Quizplus · Accepted Answer

When the actual unemployment rate is equal to the natural unemployment rate, it means the economy has reached full employment and all available resources are being utilized, which implies that the economy is operating at its potential GDP.

When the Actual Unemployment Rate Is Equal to the Natural