During the last half of 2012,the U.S.unemployment rate was just under 8 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 the rate that exists when the labor market is in equilibrium and there is no cyclical unemployment. In the U.S., the natural rate is estimated to be between 4 and 6 percent. Therefore, an unemployment rate of just under 8 percent is likely above the natural rate, indicating a weaker labor market and lower real GDP growth.

During the Last Half of 2012,the U