Use the figure below to answer the following questions.
Figure 10.3.2
-Refer to Figure 10.3.2.Currently in the economy
A)the actual unemployment rate is equal to the natural unemployment rate.
B)potential GDP is greater than equilibrium GDP.
C)the actual unemployment rate is less than the natural unemployment rate.
D)there is a recessionary gap.
E)there is a below full- employment equilibrium.

Question

Use the figure below to answer the following questions.
  Figure 10.3.2
-Refer to Figure 10.3.2.Currently in the economy
A)the actual unemployment rate is equal to the natural unemployment rate. 
B)potential GDP is greater than equilibrium GDP. 
C)the actual unemployment rate is less than the natural unemployment rate. 
D)there is a recessionary gap. 
E)there is a below full- employment equilibrium.

Quizplus · Accepted Answer

The actual unemployment rate is below the natural unemployment rate, indicating that the economy is currently operating at a below full-employment equilibrium.

Use the Figure Below to Answer the Following Questions