Question

g The natural unemployment rate describes the unemployment rate when Group of answer choices real GDP is equal to potential GDP. cyclical unemployment is positive. frictional unemployment is 0. the economy is no longer in a recession.

Answer 1

Answer:

The correct answer is letter "A": real GDP is equal to potential GDP.

Explanation:

Natural unemployment is defined as the lowest unemployment rate and the economy will rose. It's natural because factors other than a poor economy triggers it. One aspect of natural unemployment is frictional unemployment that is induced, for example, by conditions such as recent graduates starting to pursue a job. Another part of natural unemployment is structural unemployment, where employees do not find jobs and employers do not find workers having jobs available.

The natural unemployment rate describes the unemployment rate when the real Gross Domestic Product (GDP) equals the potential GDP. The real GDP measures a country's productivity adjusted for changes in inflation while the potential GDP measures the productivity of a country considering that inflation is constant.