When the current state of the economy is such that Real GDP is greater than Natural Real GDP, the economy is in a(n) ____________________ gap. In this situation, the (actual) unemployment rate is ___________ than the natural unemployment rate, and there is a ________________ in the labor market
A) recessionary; greater; shortage
B) inflationary; less; shortage
C) inflationary; greater; surplus
D) recessionary; greater; surplus
E) recessionary; less; shortage
B
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Even though government spending and net exports in Country A has increased, its GDP has decreased. Which of the following statements is most likely to be true of the given scenario? a. Consumption expenditure in Country A has significantly increased. b. Consumption expenditure in Country A has significantly decreased. c. Investment expenditure in Country A has significantly increased
d. The number of new firms in every industry has increased in Country A.
The Federal Reserve can decrease the money supply by:
A. conducting open market purchases. B. introducing deposit insurance. C. decreasing the discount rate. D. increasing reserve requirements.