Solved

Suppose That the Unemployment Rate Equals 4

Question 31

Multiple Choice

Suppose that the unemployment rate equals 4.5 percent and that the natural unemployment rate is 5.5 percent. We can conclude that


A) potential GDP is greater than real GDP.
B) potential GDP equals real GDP.
C) potential GDP is less than real GDP.
D) we have mismeasured the natural unemployment rate.
E) real GDP is greater than nominal GDP.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q26: With the exception of the real interest

Q27: In a country with a working-age population

Q28: Use the table below to answer the

Q29: All of the following are possible sources

Q30: At full employment, the unemployment rate<br>A)should be

Q32: Between 1972 and 2014, Canada's inflation rate

Q33: In a country with a working-age population

Q35: The labour force participation rate is<br>A)the percentage

Q36: Hyperinflation is defined as<br>A)declining inflation rates.<br>B)rising but

Q38: R2 is<br>A)long- term unemployment.<br>B)the official unemployment rate.<br>C)comparable