When there is a recessionary gap,(actual)Real GDP is __________ Natural Real GDP,and the (actual)unemployment rate is __________ the natural unemployment rate.
A) greater than; less than
B) greater than; greater than
C) greater than; equal to
D) less than; greater than
E) less than; less than

Question

Quizplus · Accepted Answer

When there is a recessionary gap, actual Real GDP is less than Natural Real GDP, and the actual unemployment rate is greater than the natural unemployment rate.

When There Is a Recessionary Gap,(actual)Real GDP Is __________ Natural