Question

When the unemployment rate is equal to its natural rate—that is, no cyclical unemployment exists—the output...

When the unemployment rate is equal to its natural rate—that is, no cyclical unemployment exists—the output level produced in the economy is:

a. below full-employment output.

b. at full-employment output.

c. always decreasing.

d. always increasing.

e. above full-employment output.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • Option b is the answer.
  • At full-employment output.
  • When the unemployment rate is equal to its natural rate -that is, no cyclical unemployment exists -the output level produced in the economy is at full-employment output. Cyclical unemployment is accompanied with regular ups and downs which happens in accordance to the trends in industries in a cyclic manner. When all the available employment opportunities are used effectively, then there exists full employment. It includes all the skilled and unskilled labourers.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 25 (1 point) Which of the following statements is true? a Cyclical unemployment is caused...
Question 25 (1 point) Which of the following statements is true? a Cyclical unemployment is caused by changes in weather conditions, tourist patterns, and other seasonal factors. b Seasonal unemployment is caused by a recession. As firms respond to low demand for their goods and services, output and employment fall. c Very high unemployment during the Great Depression (25% in 1933) is significantly explained by cyclical unemployment. d All of the above. e Only a) and b) Question 26 (1...
The natural rate of unemployment is the unemployment rate when... A. all workers seeking employment have...
The natural rate of unemployment is the unemployment rate when... A. all workers seeking employment have taken jobs B. all of the unemployed are only structurally unemployed C. there is no frictional unemployment D. there is no cyclical unemployment E. there are no new unemployed individuals
When an economy operates at its long-run potential output level, a. aggregate demand will exceed aggregate...
When an economy operates at its long-run potential output level, a. aggregate demand will exceed aggregate supply in the goods and services market. b. unemployment will decline to an abnormally low rate that cannot be sustained in the long run. c. the actual rate of unemployment will exceed the natural rate of unemployment. d. the natural and actual rates of unemployment will be equal. If an economy is operating in the range where its aggregate supply curve is vertical, a....
Does the​ Fed's dual mandate require it to attain a zero percent unemployment​ rate? Briefly explain....
Does the​ Fed's dual mandate require it to attain a zero percent unemployment​ rate? Briefly explain. A. ​No, because even when the economy is at full​ employment, there is still a natural rate of unemployment. B. ​No, because even when the economy is at full​ employment, some people will always be cyclically unemployed. C. ​Yes, because without a zero percent unemployment​ rate, there will be financial distress in the economy. D. ​Yes, because without a zero percent unemployment​ rate, GDP...
When the labor market is at full employment A.there is only cyclical unemployment in the economy....
When the labor market is at full employment A.there is only cyclical unemployment in the economy. B.there is only structural unemployment in the economy. C.the unemployment rate is 0%. D.there is no cyclical unemployment in the economy.
Cyclical unemployment occurs when ___________. Select the correct answer below: real GDP is below the full-employment...
Cyclical unemployment occurs when ___________. Select the correct answer below: real GDP is below the full-employment level real GDP exceeds the full-employment level real GDP equals the full employment level none of the above
1. Which types of unemployment exist at all times and determine the natural rate of unemployment?...
1. Which types of unemployment exist at all times and determine the natural rate of unemployment? A. structural unemployment and cyclical unemployment B. cyclical and frictional unemployment C. frictional unemployment and structural unemployment 2. All else equal, how will increasing unemployment insurance affect the natural rate of unemployment? A. The natural rate of unemployment is likely to decrease. B. The natural rate of unemployment will remain unaffected. C. The natural rate of unemployment is likely to increase. 3. Which form...
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000. Use Okun's Law...
Suppose the natural rate of unemployment is 5%, with full-employment output of $7000. Use Okun's Law to calculate the level of national output if the employment rate is 7%.
An economy has the natural rate of unemployment equal to 9.2%. The inflation rate in the...
An economy has the natural rate of unemployment equal to 9.2%. The inflation rate in the previous period was 5% If there is no cyclical unemployment and the country has adaptive expectations what is the difference between the inflation rate and the expected inflation rate.
Assume that a country's economy run equilibrium and the actual unemployment lower than the natural rate...
Assume that a country's economy run equilibrium and the actual unemployment lower than the natural rate of unemployment A)This economy is in what state 1 Where is the current output level, in relation to full employment 2 is thete inflation in this economy Why or Why not B)What open-market operation can the country's central bank use to move the economy toward its long-run equilibrium C)As a result of that action above what happens to the Money Supply and equilibrium nominal...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT