Use the table to answer the questions. u = unemployment rate, u* = natural rate of unemployment, Y = output, Y* = full employment output Year u u* 2007 4% 4.5% 2008 4.5% 4.5% 2009 5.25% 4.5% Given the information in the table, select the answer that best describes the condition of this economy in 2007. The economy is healthy, where Y is equal to Y*. There is not enough information to assess the condition of the economy. The economy is in an exceptional expansion because output is below potential. The economy is in a recession. The economy is in an exceptional expansion because Y is greater than Y*. What is the value of cyclical unemployment in 2009? value: %

Use the table to answer the questions. u = unemployment rate, u* = natural rate of unemployment, Y = output, Y* = full employment output Year u u* 2007 4% 4.5% 2008 4.5% 4.5% 2009 5.25% 4.5% Given the information in the table, select the answer that best describes the condition of this economy in 2007. The economy is healthy, where Y is equal to Y. There is not enough information to assess the condition of the economy. The economy is in an exceptional expansion because output is below potential. The economy is in a recession. The economy is in an exceptional expansion because Y is greater than Y. What is the value of cyclical unemployment in 2009? value: %

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 2WNG

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