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If the Natural Unemployment Rate Is 5 Percent and the Current

Question 35

Multiple Choice

If the natural unemployment rate is 5 percent and the current unemployment rate is 6 percent,then the economy is


A) producing a level of Real GDP that is greater than the level of natural Real GDP.
B) in an inflationary gap.
C) producing a level of Real GDP that is less than the level of natural Real GDP.
D) a and b
E) b and c

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