Exhibit 15-3 -Refer to the Graph in the Exhibit.What Is the Natural

Multiple Choice

Exhibit 15-3

-Refer to the graph in the exhibit.What is the natural rate of unemployment?
 

A)  2 percent, because the natural rate of unemployment occurs at the intersection of the curves 
B)  4 percent, because the natural rate of unemployment is on the long-run curve 
C)  8 percent, because the natural rate of unemployment is the most the economy can attain with high inflation 
D)  10 percent, because the natural rate of unemployment is the most the economy can attain