Problem
Analyze the following graph to answer the following questions:
In July of 2018, the civilian unemployment rate was 3.9%.
I. Based off of the information presented and the civilian unemployment rates' position relative to the target rate of unemployment in the graph above, what does standard economic theory preddict is most likely going to happen in the economy? Why does this occur?
II. According to standard economic theory, what types of unemployment were present in the economy in July of 2018? Why are these cases of unemployment present in the economy at that point in time?