If the current unemployment rate is equal to the natural unemployment rate,then current Real GDP is
A) greater than Natural Real GDP.
B) equal to Natural Real GDP.
C) equal to the Real GDP produced at full employment.
D) less than Natural Real GDP.
E) b and c

Question

Quizplus · Accepted Answer

When the current unemployment rate equals the natural unemployment rate, it implies the economy is operating at its full potential or full employment level. Therefore, the current Real GDP is equal to the Natural Real GDP and also equal to the Real GDP produced at full employment.

If the Current Unemployment Rate Is Equal to the Natural