Monday, February 15, 2016

What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?



What is the relationship between the natural unemployment rate, the unemployment rate, potential GDP, and actual GDP?

#Parkin #11edition #Unemployment #CPI #Inflation #Chapter22

at

1 comment:

  1. Rully MangunsongFebruary 15, 2016 at 1:48 AM

    Answer: When the economy is at potential GDP, the unemployment rate is the natural unemployment rate. If actual GDP is less than potential GDP, then the unemployment rate exceeds the natural unemployment rate. And if actual GDP exceeds potential GDP, then the unemployment rate is less than the natural unemployment rate.

    ReplyDelete