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When the Output Gap Is Negative, the Actual Unemployment Rate

Question 135

Multiple Choice

When the output gap is negative, the actual unemployment rate is:


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

Correct Answer:

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