In the last half of 1999,the U.S.unemployment rate was about 4 percent.Historical experience suggests that this is
A)above the natural rate,so real GDP growth was likely low.
B)above the natural rate,so real GDP growth was likely high.
C)below the natural rate,so real GDP growth was likely low.
D)below the natural rate,so real GDP growth was likely high.

Question

Quizplus · Accepted Answer

The natural rate of unemployment is typically higher than 4 percent, so an unemployment rate of about 4 percent suggests the economy was operating above its potential, leading to higher real GDP growth.

In the Last Half of 1999,the U