Multiple Choice
Economists in Olliestan estimate the natural rate of unemployment is 7 percent. If the official unemployment rate is 9 percent, then
A) cyclical unemployment is negative.
B) there is a recessionary gap.
C) healthy unemployment is 2 percent.
D) cyclical unemployment is 9 percent.
E) there is an inflationary gap.
Correct Answer:
Verified
Correct Answer:
Verified
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