An Unemployment Rate That Is Above the Natural Rate Indicates

Multiple Choice

An unemployment rate that is above the natural rate indicates ____________,and we say that the economy is producing at ____________.

A) cyclical unemployment; more than the full-employment output level
B) cyclical unemployment; the full-employment output level
C) cyclical unemployment; less than the full-employment output level
D) frictional unemployment; more than the full-employment output level
E) frictional unemployment; the full-employment output level