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earnstyle [38]
3 years ago
14

When the unemployment rate is less than the natural unemployment rate

Social Studies
1 answer:
Naya [18.7K]3 years ago
7 0

Answer:

C) the output gap equals zero. the output gap is negative.

Explanation:

When the unemployment rate is less than the natural rate of unemployment (negative cyclical unemployment) real GDP is greater than potential GDP.

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