During an economic boom, (1) the actual rate of unemployment will exceed the natural rate of unemployment. (2) widespread unemployment will cause inflation to increase. (3) the actual rate of unemployment will equal the natural rate of unemployment. (4) the output of the economy will exceed its long-run potential output. (2)

During an economic boom, certain macroeconomic indicators behave in specific ways. Let's analyze each of the statements you've provided: 1. **The actual rate of unemployment will exceed the natural rate of unemployment.** - **Incorrect.** During a boom, economic activity is high, leading to lower unemployment rates, often **below** the natural rate of unemployment. 2. **Widespread unemployment will cause inflation to increase.** - **Incorrect as stated.** In fact, it's typically **low unemployment** that can lead to increased inflation. When unemployment is low, resources (including labor) are in higher demand, which can drive up wages and prices. 3. **The actual rate of unemployment will equal the natural rate of unemployment.** - **Incorrect.** During different phases of the economic cycle (like booms or recessions), the actual unemployment rate can deviate from the natural rate. It's only in a long-term equilibrium that they might be equal. 4. **The output of the economy will exceed its long-run potential output.** - **Correct.** During an economic boom, actual GDP often surpasses the economy's long-run potential output. This can lead to overheating, where demand outpaces supply, contributing to inflationary pressures. **Conclusion:** The correct statement during an economic boom is: **(4) the output of the economy will exceed its long-run potential output.** Your initial selection of **(2)** is not accurate in this context. Instead, **(4)** best describes the typical scenario during an economic boom.