Multiple Choice
In Macroland,potential output equals $100 billion and the natural rate of unemployment is 5%.If the actual unemployment rate is 3%,then the output gap equals
A) - $4 billion.
B) - $2 billion.
C) - $1 billion.
D) $2 billion.
E) $4 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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