Figure 24-4
-Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?
A) It will rise.
B) It will fall.
C) It will remain constant.
D) not enough information to answer the question

Question

Figure 24-4 
-Refer to Figure 24-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?
A) It will rise. 
B) It will fall. 
C) It will remain constant. 
D) not enough information to answer the question

Quizplus · Accepted Answer

The economy is at point A in year 1, which is below the natural rate of unemployment. This means that there is a shortage of labor, and businesses are competing for workers. As a result, wages will rise, and the unemployment rate will fall.

Figure 24-4 -Refer to Figure 24-4. Given the Economy Is at Point