According to Okun's law, when cyclical unemployment is positive, the output gap:
A)is positive.
B)is negative.
C)equals zero.
D)equals the rate of cyclical unemployment.

Name: According to Okun's law, when cyclical unemployment is positive, the output gap: A)is positive. B)is negative. C)equals zero. D)equals the rate of cyclical unemployment.
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Question

Quizplus · Accepted Answer

When cyclical unemployment is positive the output gap is negative because the actual unemployment rate exceeds the natural unemployment rate.

According to Okun's Law, When Cyclical Unemployment Is Positive, the Output