When the economy is producing the level of output equal to natural Real GDP,the unemployment rate is equal to
A) zero.
B) the natural unemployment rate.
C) the frictional unemployment rate.
D) the structural unemployment rate.

Question

Quizplus · Accepted Answer

When the economy is producing output equal to natural Real GDP, it is at full employment, meaning there is no cyclical unemployment. However, there will still be some level of frictional and structural unemployment present in the economy, which makes the answer B, the natural unemployment rate, the best choice.

When the Economy Is Producing the Level of Output Equal