Use the figure below to answer the following question(s).
Figure 9-2

-Which of the following is true for the economy depicted in Figure 9-2?
A)Potential output exceeds Y₁.
B)When output Y₁ is achieved,the actual rate of unemployment will exceed the natural rate of unemployment.
C)When output Y₁ is achieved,the actual rate of unemployment will be less than the natural rate of unemployment.
D)When output Y₁ is achieved,the actual rate of unemployment will equal the economy's natural rate of unemployment.

Question

Use the figure below to answer the following question(s).
Figure 9-2
 
-Which of the following is true for the economy depicted in Figure 9-2?
A)Potential output exceeds Y₁. 
B)When output Y₁ is achieved,the actual rate of unemployment will exceed the natural rate of unemployment. 
C)When output Y₁ is achieved,the actual rate of unemployment will be less than the natural rate of unemployment. 
D)When output Y₁ is achieved,the actual rate of unemployment will equal the economy's natural rate of unemployment.

Quizplus · Accepted Answer

When output Y₁ is achieved, the actual rate of unemployment will equal the economy's natural rate of unemployment.

Use the Figure Below to Answer the Following Question(s)