Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
True
B
False
Understanding the Answer
Let's break down why this is correct
Answer
The statement is not accurate because a lower actual unemployment rate compared to the natural unemployment rate usually suggests that the economy is doing well, not in a recession. The natural unemployment rate includes people who are temporarily out of work or transitioning between jobs, reflecting a healthy economy. When the actual unemployment rate falls below this level, it often indicates that more people are finding jobs and the economy is growing. For example, if the natural unemployment rate is 5% and the actual unemployment rate drops to 3%, this means more people are employed, showing economic strength rather than weakness. Therefore, a lower actual unemployment rate is typically a sign of a thriving economy, not a recession.
Detailed Explanation
The statement is false. Other options are incorrect because Some might think that lower unemployment means a recession.
Key Concepts
Unemployment Rates
Economic Indicators
Macroeconomic Performance
Topic
Unemployment Rates and Economic Indicators
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.