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The Frictional Unemployment Rate Is 1

Question 89

Multiple Choice

The frictional unemployment rate is 1.5 percent,the structural unemployment rate is 3.4 percent,and the economy's current unemployment rate is 4.9 percent.The economy is in


A) an inflationary gap producing more than Natural Real GDP.
B) a recessionary gap producing more than Natural Real GDP.
C) an inflationary gap producing Natural Real GDP.
D) a recessionary gap producing less than Natural Real GDP.
E) long-run equilibrium.

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