Which of the following is true when an economy is at its potential GDP? Only structural unemployment as a result of technological changes will exist in the economy. The unemployment rate will be greater than 0%. O Only frictional unemployment will exist in the economy. O The unemployment rate will be 0%. The labour force participation rate will be 100%.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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Which of the following is true when an economy is at its potential GDP?
Only structural unemployment as a result of technological changes will exist in the economy.
O The unemployment rate will be greater than 0%.
O Only frictional unemployment will exist in the economy.
O The unemployment rate will be 0%.
O The labour force participation rate will be 100%.
Transcribed Image Text:Which of the following is true when an economy is at its potential GDP? Only structural unemployment as a result of technological changes will exist in the economy. O The unemployment rate will be greater than 0%. O Only frictional unemployment will exist in the economy. O The unemployment rate will be 0%. O The labour force participation rate will be 100%.
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