Use the following to answer questions :
Figure: Actual and Natural Rates of Unemployment
-(Figure: Actual and Natural Rates of Unemployment) Look at the figure Actual and Natural Rates of Unemployment. In 2014 the output gap was:

Question

Use the following to answer questions :
Figure: Actual and Natural Rates of Unemployment 
-(Figure: Actual and Natural Rates of Unemployment) Look at the figure Actual and Natural Rates of Unemployment. In 2014 the output gap was:

Quizplus · Accepted Answer

The actual rate of unemployment (blue line) is above the natural rate of unemployment (red line) in 2014, indicating that there is a negative output gap.

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