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If the Government Thinks the Natural Unemployment Rate Is 5%,when

Question 10

Multiple Choice

If the government thinks the natural unemployment rate is 5%,when it is really 6%,then the government will


A) overestimate the actual deficit.
B) underestimate the actual deficit.
C) overestimate the cyclically adjusted deficit.
D) underestimate the cyclically adjusted deficit.
E) none of the above

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