When the unemployment rate is ________ the natural unemployment rate,real GDP is ________ potential GDP.

Name: When the unemployment rate is ________ the natural unemployment rate,real GDP is ________ potential GDP.
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When the unemployment rate is below the natural unemployment rate, it means that there is a labor shortage and employers may have to offer higher wages to attract workers. This can lead to an increase in production and real GDP being above potential GDP.

When the Unemployment Rate Is ________ the Natural Unemployment Rate,real