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AP® Macroeconomics

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Current Unemployment Compared to the Natural Rate in a Recession

APMACR-WCX14X

If Country X is currently in a recession, how does their current unemployment rate most likely compare to their natural rate of unemployment?

A

Country X's current unemployment rate is probably at the natural rate of unemployment.

B

Country X 's current unemployment rate is probably slightly below the natural rate of unemployment.

C

Country X's current unemployment rate is probably significantly below the natural rate of unemployment.

D

Country X's current unemployment rate is probably above the natural rate of unemployment.

E

Not enough information is provided to compare the current and natural rates of unemployment for country X.