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Match the level of unemployment with the condition of the overall economy. Unemployment equals the natural rate. Cyclical unemployment equals zero. Unemployment is below the natural rate. Unemployment is above the natural rate. Actual GDP is below potential GDP. Actual GDP is equal to potential GDP. Actual GDP is above potential GDP.

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Answer:

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1. Actual GDP is below potential GDP

Level of unemployment: Unemployment is above the natural rate

2. Actual GDP is equal to potential GDP

Level of unemployment: Unemployment equals the natural rate

3. Actual GDP is above potential GDP

Level of unemployment: Unemployment is below the natural rate

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