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When There Is a Positive Output Gap, the Unemployment Rate

Question 122

Multiple Choice

When there is a positive output gap, the unemployment rate is:


A) above the natural rate.
B) above the natural rate
C) below the natural rate.
D) below the natural rate
E) equal to the natural rat.
F) equal to the natural rat
G) The actual and natural unemployment rates are not related to the output gap
H) The actual and natural unemployment rates are not related to the output gap.

Correct Answer:

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