If the natural unemployment rate is 5 percent and the current unemployment rate is 6 percent,then the economy is
A) producing more Real GDP than it does at full employment.
B) in an inflationary gap.
C) producing less Real GDP than it does at full employment.
D) a and b
E) b and c
Correct Answer:
Verified
Q12: If the SRAS curve intersects the AD
Q13: Exhibit 9-1 Q14: If the natural unemployment rate is 7 Q16: If Real GDP is less than Natural Q18: If the economy is currently in a Q19: When the economy is producing Real GDP Q27: If the economy is in a recessionary Q36: If Real GDP is less than Natural Q39: The long-run aggregate supply (LRAS)curve is Q46: An inflationary gap exists when AD and
A) horizontal.
B)
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