In December of 2007, with an unemployment rate of 5.0 percent, most economists believed this was above the natural rate.

Question

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The natural rate of unemployment is the rate of unemployment that exists when the labor market is in equilibrium and there is no cyclical unemployment. In December of 2007, the unemployment rate was at the natural rate or slightly below it, as it was a period of economic expansion and low unemployment. Therefore, most economists believed that the unemployment rate was below the natural rate.

In December of 2007, with an Unemployment Rate of 5