Slack Exists Even in a Vigorous U

Multiple Choice

Slack exists even in a vigorous U.S. economy because

A) the average capacity utilization rate is 86 percent when the 5-6 percent natural rate of unemployment is achieved.
B) the average capacity utilization rate is 81 percent when the 4 percent natural rate of unemployment is achieved.
C) the average capacity utilization rate is 81 percent and the natural rate of unemployment is roughly 5-6 percent.
D) even though full employment corresponds to a low 4 percent unemployment rate, the average capacity utilization rate is only 81 percent.