Suppose Venezuela Experiences Economic Expansion in 2013, Yet Its Unemployment

Multiple Choice

Suppose Venezuela experiences economic expansion in 2013, yet its unemployment rate is 15 percent, and economists have estimated that the natural rate of unemployment in Venezuela is also approximately 15 percent.. If this is the case, then for the Venezuelan economy in 2013,

A) actual output is significantly above potential output.
B) potential output is significantly above actual output.
C) actual output is roughly equal to potential output.
D) None of the above are correct because there is no relationship between actual output and potential output in the short run.