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If Employment in the United States Were to Reach Its

Question 8

Multiple Choice

If employment in the United States were to reach its level of potential employment, then the United States would be


A) maintaining the natural rate of unemployment of 5-6 percent and supporting the full-employment level of GDP.
B) maintaining the natural rate of unemployment of 3-4 percent and supporting the full-employment level of GDP.
C) falling short of the full-employment level of GDP because the natural rate of unemployment is 5-6 percent.
D) falling short of the natural rate of unemployment of 5-6 percent, but maintaining, nonetheless, a long-term position of stable prices.
E) none of the above.

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