The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.
TABLE 19-1
-Refer to Table 19-1.What is the unemployment rate when this economy is at "full employment"?
A)5.9%
B)6.0%
C)6.3%
D)7.0%
E)7.1%

Question

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms.
  TABLE 19-1
-Refer to Table 19-1.What is the unemployment rate when this economy is at "full employment"?
A)5.9% 
B)6.0% 
C)6.3% 
D)7.0% 
E)7.1%

Quizplus · Accepted Answer

The natural rate of unemployment is estimated to be around 4.4% according to the table. Full employment occurs when actual unemployment is equal to the natural rate of unemployment. From the table, actual unemployment at full employment is estimated to be 6.3% (and not listed in the options). Therefore, the closest answer is C which is 6.3%.

The Table Below Provides Macroeconomic Data for a Hypothetical Economy