Exhibit 9-5 -The Structural Unemployment Rate Is 2.3 Percent,the Frictional Unemployment Rate

Multiple Choice

Exhibit 9-5
-The structural unemployment rate is 2.3 percent,the frictional unemployment rate is 2.4 percent,and the economy's current unemployment rate is 4.1 percent.The economy is in

A) a recessionary gap producing less than Natural Real GDP.
B) an inflationary gap producing more than Natural Real GDP.
C) long-run equilibrium.
D) an inflationary gap producing Natural Real GDP.
E) a recessionary gap producing more than Natural Real GDP.