Question

During a boom, the actual rate of unemployment will be Group of answer choices

less than the natural rate of unemployment.
greater than the natural rate of unemployment.
equal to the natural rate of unemployment.
unaffected by the economic expansion.

Answer 1

Answer:

The correct answer is letter "C": equal to the natural rate of unemployment .

Explanation:

Unemployment is the state in which an individual does not have a job but is actively looking for one. The Natural Rate of Unemployment or NRU represents the unemployment there is based on full-employment real output. In case an economy is producing an efficient amount of output, meaning the economy is in expansion or "boom", the actual unemployment rate equals the NRU.