If the output gap equals 1.8 percent, then:
A. there is significant cyclical unemployment.
B. cyclical unemployment equals the sum of structural and frictional unemployment.
C. there is an expansionary gap.
D. potential GDP exceeds actual GDP.
Answer: C
Economics
You might also like to view...
According to the text, ________ is perhaps the most critical aspect of a country's economic performance
A) the unemployment rate B) growth in GDP C) the inflation rate D) the living standard
Economics
One of the major criticisms of the World Bank is that it lends funds
A) to countries which could easily borrow funds from other sources. B) to terrorist groups not affiliated with any country. C) to impoverished nations. D) to industrialized nations.
Economics