The amount of output produced when the unemployment rate equals the natural rate of employment in an economy is called_____ output.
A)natural
B)aggregate
C)full-employment
D)long-run

Question

Quizplus · Accepted Answer

The amount of output produced when the unemployment rate equals the natural rate of employment is known as full-employment output. It represents the level of production that an economy can sustain in the long run without generating inflationary pressures. Therefore, option C is the correct choice as it directly refers to this concept. Option A (natural) and D (long-run) are closely related to the idea of full-employment output, but they do not capture the same concept. Option B (aggregate) is more general and does not specifically refer to the level of output associated with the natural rate of employment.

The Amount of Output Produced When the Unemployment Rate Equals