Year 2014 2015 Potential Real GDP $14.0 trillion 14.5 trillion Real GDP $14.0 trillion 14.2 trillion O A. potential GDP and the inflation rate B. real GDP and the inflation rate O C. real GDP and the unemployment rate D. real GDP and potential GDP Price Level 150 152 Consider the hypothetical information in the table above for potential real GDP, real GDP and the price level in 2014 and in 2015 if the Federal Reserve does not use monetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2015, which of the following will be higher than if the Fed had taken no action?

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Unemployment and Cost of Unemployment

Unemployment is the state of being unemployed, even when an individual is actively seeking work opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed.