Suppose the equilibrium unemployment rate is 3.8%. Which of the following rates of unemployment would be most likely if the economy is in the trough of a recession?

Question

Quizplus · Accepted Answer

The trough of a recession is characterized by high unemployment rates, meaning that the actual unemployment rate would be above the equilibrium level. Therefore, the only option that is above the equilibrium rate of 3.8% is D) 7.9%.

Suppose the Equilibrium Unemployment Rate Is 3