Use the figure below to answer the following question(s).
Figure 9-2
-The economy depicted in Figure 9-2 is experiencing
A)an abnormally high rate of unemployment.
B)an abnormally low rate of unemployment.
C)its natural rate of unemployment.
D)an output that cannot be sustained.

Question

Use the figure below to answer the following question(s).
Figure 9-2 
-The economy depicted in Figure 9-2 is experiencing
A)an abnormally high rate of unemployment. 
B)an abnormally low rate of unemployment. 
C)its natural rate of unemployment. 
D)an output that cannot be sustained.

Quizplus · Accepted Answer

The natural rate of unemployment is the level of unemployment consistent with a stable rate of inflation, indicating the economy is at full employment without cyclical unemployment.

Use the Figure Below to Answer the Following Question(s)