If nominal GDP is higher than expected, then unemployment is:
A) nonexistent with a shortage of workers.
B) higher than desired.
C) below the natural rate.
D) above the natural rate.

Question

Quizplus · Accepted Answer

When nominal GDP is higher than expected, it typically indicates that the economy is growing faster than anticipated. This often leads to lower unemployment rates as businesses expand and hire more workers, potentially pushing unemployment below the natural rate.

If Nominal GDP Is Higher Than Expected, Then Unemployment Is