Exhibit 16-3 -In Exhibit 16-3,the Natural Rate of Unemployment Is

Multiple Choice

Exhibit 16-3
-In Exhibit 16-3,the natural rate of unemployment is

A) 2 percent because it occurs at the intersection of the curves
B) 4 percent because it is the midpoint of the short-run curve
C) 4 percent because it is on the long-run curve
D) 8 percent because it is the most the economy can attain with high inflation
E) 10 percent because it is the most the economy can attain