Use the following to answer questions:
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure: Actual and Natural Rates of Unemployment. In 2011, the natural unemployment rate was approximately:
A) zero.
B) 3%.
C) 5.5%.
D) 9%.

Question

Use the following to answer questions: 
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure: Actual and Natural Rates of Unemployment. In 2011, the natural unemployment rate was approximately:
A) zero. 
B) 3%. 
C) 5.5%. 
D) 9%.

Quizplus · Accepted Answer

In the figure, the natural unemployment rate is shown as the "Potential GDP" line, which intersects with the "Actual GDP" line at around 5.5%. Therefore, the best choice would be C, indicating that the natural unemployment rate was approximately 5.5% in 2011.

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