Real GDP B y* Time Above is a diagram of the business cycle. When the economy is operating at point B, which of the following is true? O The frictional and structural unemployment rates are negative. O The economy is not yet at full employment. O The structural unemployment rate is negative. O The unemployment rate is 0%. O The economy is at its natural rate of unemployment.

Macroeconomics: Private and Public Choice (MindTap Course List)
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ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
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Real GDP
A
C
Y*
Y
Time
Above is a diagram of the business cycle. When the economy is operating at point B, which of the following is true?
O The frictional and structural unemployment rates are negative.
The economy is not yet at full employment.
The structural unemployment rate is negative.
The unemployment rate is 0%.
O The economy is at its natural rate of unemployment.
Transcribed Image Text:Real GDP A C Y* Y Time Above is a diagram of the business cycle. When the economy is operating at point B, which of the following is true? O The frictional and structural unemployment rates are negative. The economy is not yet at full employment. The structural unemployment rate is negative. The unemployment rate is 0%. O The economy is at its natural rate of unemployment.
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