-Refer to Exhibit 9-7.Which point is representative of the economy with an unemployment rate that is less than the natural unemployment rate?
A) A
B) B
C) C
D) E

Question

-Refer to Exhibit 9-7.Which point is representative of the economy with an unemployment rate that is less than the natural unemployment rate?
A) A 
B) B 
C) C 
D) E

Quizplus · Accepted Answer

Point C represents an economy with an unemployment rate that is less than the natural unemployment rate because it is located beyond the potential GDP line, indicating an overheated economy where demand for labor is high, pushing unemployment below its natural rate.