Multiple Choice
If the unemployment rate is 4.5 percent and the natural unemployment rate is 5.5 percent, then
A) potential GDP equals real GDP.
B) real GDP is greater than nominal GDP.
C) potential GDP is greater than real GDP.
D) we have mismeasured the natural unemployment rate.
E) potential GDP is less than real GDP.
Correct Answer:

Verified
Correct Answer:
Verified
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