According to the business cycle, the actual rate of unemployment equals the natural rate of unemployment when the economy is on the potential line.
What is Unemployment?
This refers to the situation in which a person is without paid employment and cannot adequately cater to his needs.
Hence, we can see that from the complete question, there is an image attached which shows real output graphed against time and there is the expansion, peak, etc and there is equality between the actual and natural rate of unemployment on the potential line.
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