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Zoltan Novak, and Paul smith both residents of the country of EAST Paragon are discussing whether the economy is operating at full employment. Zoltan, a market analyst argues that with unemployment at 5.3%, the economy cannot possibly be fully utilizing all its resources. Paul, who is a journalist, disagree based on a recent newspaper article that shows industrial production in East Paragon is at its highest level. This, he claims, is likely to indicate that the economy is operating at full employment. Which of the following, if true, would support Zoltan's claim? A. Compared to other countries in the worlds, East Paragon has high levels of domestic consumption. B. The number of new orders placed for investment goods ros 2.3 % more than last year. C.Due to an abundant supply of labor in East Paragon, exports of manufactured goods have increased significantly. D. Due to its business-friendly tax system and investment policies, East Paragon attracts high level of foreign direct investment. E. The natural rate of unemployment in East Paragon is estimated to be 1%.
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