Multiple Choice
If the professional opinions of economists regarding the natural rate of unemployment vary between 4.5 and 6 percent, then when the actual rate of unemployment equals 5 percent:
A) the natural rate of unemployment equals 5 percent.
B) there is a recessionary gap.
C) there is an expansionary gap.
D) there could be either an expansionary or recessionary gap, or the economy could be at potential output depending on the accuracy of measurement.
Correct Answer:
Verified
Correct Answer:
Verified
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