Suppose that an economy is overheating. You would expect to see the unemployment rate:

Name: Suppose that an economy is overheating. You would expect to see the unemployment rate:
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If an economy is overheating, it means that there is a high demand for goods and services, which leads to firms increasing production and possibly expanding. This, in turn, creates job opportunities, reducing unemployment. Therefore, the unemployment rate would fall below the equilibrium unemployment rate.

Suppose That an Economy Is Overheating