When the Current State of the Economy Is Such That

Multiple Choice

When the current state of the economy is such that Real GDP is less than Natural Real GDP,the economy is in a(n) ____________________ gap.In this situation,the (actual) unemployment rate is ___________ than the natural unemployment rate,and there is a ________________ in the labor market.

A) recessionary; greater; shortage
B) inflationary; less; shortage
C) inflationary; greater; surplus
D) recessionary; greater; surplus
E) recessionary; less; shortage