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When Actual Unemployment Is Less Than Its Natural Rate

Question 74

Multiple Choice

When actual unemployment is less than its natural rate


A) the economy is producing below its long-run capabilities.
B) the economy is producing within its long-run capabilities.
C) resources are employed at levels that are not sustainable in the long run.
D) resources are employed at levels that are sustainable in the long run.
E) output is less than full-employment output.

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