114k views
2 votes
When the current state of the economy is such that Real GDP is equal to Natural Real GDP, the economy is in ____________________ . In this situation, the (actual) unemployment rate is ___________ the natural unemployment rate, and there is ________________ in the labor market.

User DrLazer
by
5.9k points

1 Answer

3 votes

Answer:

When the current state of the economy is such that Real GDP is equal to Natural Real GDP, the economy is in Full Employment. In this situation, the (actual) unemployment rate is equal to the natural unemployment rate, and there is equilibrium in the labor market.

Step-by-step explanation:

Real GDP is the current value of production in an economy in a year.

Natural Real GDP is optimum level of production of goods and services in an economy in a year

Actual unemployment Rate

Natural unemployment Rate is the persistent unemployment indices in an efficient, expanding economy when labor and resource markets are in equilibrium.

Full employment is an economic situation in which all available labor resources are being used in the most efficient way possible.

User Fidan Hakaj
by
5.6k points