Business, 02.03.2020 17:33 bigbear123

When the economy is producing the level of output equal to natural Real GDP, the unemployment rate is equal to :A. zero. B. the natural unemployment rate. C. the frictional unemployment rate. D. the structural unemployment rate.

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Answer from: BFBtrent

When the economy is producing at natural GDP , the unemployment rate is known as the B. the natural unemployment rate.

The Natural Unemployment rate:

Refers to the sum of frictional and structural unemployment rates Is the lowest possible rate of unemployment Is experienced when the economy is at natural GDP

When the economy is producing at the natural Real GDP, it is producing at the best level it can produce given its constraints. At this level, unemployment will be at its lowest to such a point where it is considered natural unemployment.

In conclusion, the unemployment rate at natural GDP is the natural unemployment rate.

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Answer from: kayla32213

B. the natural unemployment rate.

Explanation:

When the level of output is equal to natural real GDP, it indicates that the country has reach a very optimal level of production has efficiently utilize all resources that it has in its disposal. These 'Resources' include both human , capital, and natural resources.

Natural employment rate is the amount of employment rate that occurs after a country has fully utilize its resources. Like mentioned above, This situation will arise when the level of of output equal to natural Real GDP

Since there is little to no human resources left unused which make natural unemployment rate basically equal to the total employment rate that exist in that country.

Answer from: Quest

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Answer from: Quest

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