Question

_______________________ happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment. the foreign price effect stagflation full employment gdp the interest rate effect

Answer 1

Full employment GDP happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment. Full employment describes situation in which an acceptable level of unemployment somewhere above 0% exists. Full employment GDP means that the level of GDP at which there is no deficiency of aggregate demand.