Multiple Choice
If the natural unemployment rate is 7 percent and the current unemployment rate is 5 percent,then the economy is
A) producing a level of Real GDP that is greater than the level of natural Real GDP.
B) in a recessionary 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
Correct Answer:
Verified
Correct Answer:
Verified
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