Between 2000 and 2002 national output in the United States increased by 2 %.
Over the same period the unemployment rate increased from 4 % to 6 %.
What would explain this?
1 )
There was a decrease in labour productivity.
2 )
There was a decrease in the size of the labour force.
3 )
There was a fall in the rate of inflation.
Potential growth in national output was above actual growth.
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