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AlladinOne [14]
3 years ago
10

During an economic boom, the actual rate of unemployment will exceed the natural rate of unemployment. the output of the economy

will exceed its long-run potential output. widespread unemployment will cause inflation to increase. the actual rate of unemployment will equal the natural rate of unemployment.
Social Studies
1 answer:
Arada [10]3 years ago
8 0

Answer:

correct answer is the output of the economy will exceed its long-run potential output.

Explanation:

Unemployment is the state in which an individual does not have a job but is actively looking for one

At one stage of the economic cycle, economic growth is more than normal profit. It is an unstable and usually not permanent phenomenon. This means that for some amount of time the economy's estimate is higher than its estimate or normal output.

This is due to some favourable conditions, which help the economy to bounce higher than it projected and benefit people from time to time. The economy will return to normal soon with projected growth.

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