Which of the following statements is false?
A) If the economy is self-regulating,wages are flexible.
B) The frictional unemployment rate equals the natural unemployment rate minus the structural unemployment rate.
C) If the economy is producing Natural Real GDP,it is operating at the natural unemployment rate.
D) The economy is operating at full employment if it is producing more than Natural Real GDP.

Question

Quizplus · Accepted Answer

The statement "The economy is operating at full employment if it is producing more than Natural Real GDP" is false. Full employment is achieved when the economy is producing at the natural Real GDP level, not above it.

Which of the Following Statements Is False