Question

During an economic boom, Group of answer choices the actual rate of unemployment will exceed the natural rate of unemployment. the output of the economy will exceed its long-run potential output. widespread unemployment will cause inflation to increase. the actual rate of unemployment will equal the natural rate of unemployment.

Answer 1

the output of the economy will exceed its long-run potential output.

Explanation:

An economic boom is more than usual f=profit in a phase of the economic cycle. It is a volatile and usually not permanent phenomenon. It usually means that the output  of economy for a certain amount to time is greater than its projected or usual output.

This happens due to certain favorable conditions arising that help the economy boom more than what is projected and profits the people involved momentarily Soon the economy does go back to the projected normal, usually with a projected rise.