When more labour is unemployed than the amount at the natural unemployment rate, then real GDP ________ potential GDP.
A)cannot be compared to
B)is less than
C)is greater than
D)is equal to

Question

Quizplus · Accepted Answer

When more labour is unemployed than the amount at the natural unemployment rate, then real GDP is less than potential GDP. This is because the economy is not operating at its full potential and there are resources that are not being used.

When More Labour Is Unemployed Than the Amount at the Natural