The Canadian economy is said to be producing its non-inflationary potential level of GDP when the natural rate of unemployment is:

Question

Quizplus · Accepted Answer

The natural rate of unemployment is the level of unemployment that exists when the economy is producing its potential level of GDP. While the exact natural rate may vary over time, estimates typically range from 4-6%. Therefore, option C is the most realistic choice as it falls within this range. Options A and B are too high and would suggest that the economy is producing below its potential level of GDP, while option D is too low and would suggest an overheating of the economy.

The Canadian Economy Is Said to Be Producing Its Non-Inflationary