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.

Question

Business

Taniya Hayden

31 October, 01:42

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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Answers (1)

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Terry Wallace · Answer 1

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.