Discussion #4

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Analyze the following graph to answer the following questions:

In July of 2018, the civilian unemployment rate was 3.9%.

Question 1:

Based off of the information presented and the civilian unemployment rates’ position relative to the target rate of unemployment in the graph above, what does standard economic theory predict is most likely going to happen in the economy? Why does this occur?

Question 2:

According to standard economic theory, what types of unemployment were present in the economy in July of 2018? Why are these cases of unemployment present in the economy at that point in time?

Write at least two paragraph fully answering both questions. In addition, it is required to reply to at least two other students’ posts by offering respectful suggestions, comments, or critiques related to the subject matter and their post.