Dear Expert, my question is attached as an image - I have provided all question responses very clearly. Kindly note that the question is asking me to interact with the graph and highlight a particular area. Please be very clear in which area of the graph you'd wish to highlight. Either upload an image that clearly depicts which part of the graph you'd like to highlight, or perhaps a sketch. Kindly leave no room for confusion regarding where I must highlight the graph. 5. What causes changes in the natural and actual rates of unemploymentSuppose the fictional country of Lowl is facing a decrease in the proportion of younger workers in the labor force due to a decline in birth rates.Decreasein the future.IncreaseNot changeMost likely Lowl's natural rate of unemployment willThe following graph shows Lowl's potential real GDP (the tan line) and actual real GDP (the blue line) from 1990 to 2010.On the graph, use the grey star to highlight the area between the potential and actual GDP lines corresponding to the period when Lowl experiencedeconomic expansion.10Expansion87Actual GDP32rose above the natural ratePotential GDPfell below the natural rate1990 1992 1994 1996 1998 2000 2002 2004 2008 2008 2010was equal to the natural unemployment rateYEARDuring the period you identified on the graph, Lowl's actual unemployment rateGDP (Billions of doll ars)

Unemployment: It is an economic phenomenon where all those individuals who are willing and able to…

Answered: 5. What causes changes in the natural…

MACROECONOMICS

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Author:Baumol

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Chapter6: How Statisticians Measure Inflation

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Dear Expert, my question is attached as an image - I have provided all question responses very clearly.

Kindly note that the question is asking me to interact with the graph and highlight a particular area. Please be very clear in which area of the graph you'd wish to highlight. Either upload an image that clearly depicts which part of the graph you'd like to highlight, or perhaps a sketch. Kindly leave no room for confusion regarding where I must highlight the graph.

5. What causes changes in the natural and actual rates of unemployment
Suppose the fictional country of Lowl is facing a decrease in the proportion of younger workers in the labor force due to a decline in birth rates.
Decrease
in the future.
Increase
Not change
Most likely Lowl's natural rate of unemployment will
The following graph shows Lowl's potential real GDP (the tan line) and actual real GDP (the blue line) from 1990 to 2010.
On the graph, use the grey star to highlight the area between the potential and actual GDP lines corresponding to the period when Lowl experienced
economic expansion.
10
Expansion
8
7
Actual GDP
3
2
rose above the natural rate
Potential GDP
fell below the natural rate
1990 1992 1994 1996 1998 2000 2002 2004 2008 2008 2010
was equal to the natural unemployment rate
YEAR
During the period you identified on the graph, Lowl's actual unemployment rate
GDP (Billions of doll ars)

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