The actual unemployment rate exceeds the natural rate of unemployment. What are policymakers concerned about in this situation?
What will be an ideal response?
ANSWER
If the actual unemployment rate exceeds the natural rate of unemployment, the economy is not operating near its full potential. Policymakers will want to stimulate spending thereby production and employment to move the unemployment rate towards the natural rate.
Place an order in 3 easy steps. Takes less than 5 mins.