If Real GDP Is Less Than Natural Real GDP,then the (Actual)unemployment

question 47

Multiple Choice

If Real GDP is less than Natural Real GDP,then the (actual) unemployment rate is

• A) less than the natural unemployment rate.
• B) equal to the natural unemployment rate.
• C) greater than the natural unemployment rate.
• D) equal to full employment.
• E) b and d

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Definitions:

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources or the outcome of trade between two parties.

Utility Function

An economic tool that describes how consumers rank different bundles of goods according to the level of satisfaction or utility those bundles provide.

Endowed

Provided with a large amount of a particular resource or quality.

Contract Curve

In economics, it represents the set of optimal points of exchange between two parties, where no further mutual benefit can be achieved through trade.