Suppose Actual Output Is Less Than Potential Output

question 41

Multiple Choice

Suppose actual output is less than potential output.If the output gap measures the output loss due to the failure to achieve full employment,it can generally be concluded that the larger this output gap,the

• A)greater is the employment rate.
• B)greater is the unemployment rate.
• C)lower is frictional unemployment.
• D)lower the deadweight loss of unemployment.
• E)more upward pressure there is on prices.