The table below shows real GDP,potential GDP and the unemployment rate for a hypothetical economy.
TABLE 30-3
-Refer to Table 30-3.In which years is this economy operating at full employment?

Question

The table below shows real GDP,potential GDP and the unemployment rate for a hypothetical economy.
  TABLE 30-3
-Refer to Table 30-3.In which years is this economy operating at full employment?

Quizplus · Accepted Answer

Full employment occurs when the unemployment rate equals the natural rate of unemployment, which is achieved when real GDP equals potential GDP. This occurs in 2008 when both real GDP and potential GDP are 2000, and in 2012 when both real GDP and potential GDP are 2500. In all other years, the economy is not at full employment.

The Table Below Shows Real GDP,potential GDP and the Unemployment