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High unemployment rates (rates above the natural rate) cause a(n) ____________ between what is produced and what could have been produced in an economy at full employment..

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User Manie
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Answer:

Gap

Step-by-step explanation:

2 votes

Answer: A reduction/decrease

Explanation: A high unemployment rate above the natural rate will lead to a reduction between what should have been produced and what could have been produced in full employment, at full employment production is increased. High unemployment rate affects the general output level in the economy making the number of persons capable of making purchases within the economy to reduce. The price of goods and services will generally drop as a result of unemployment and less income in the hands of the people.

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User Twoam
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