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

question 59

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) less than or greater than the natural unemployment rate,but we cannot determine which one.
• E) b and d

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Definitions:

Rationing Mechanism

A system used to distribute scarce goods or services among a population, often seen in economies facing shortages.

Price Floor

A regulatory measure that sets the lowest legal price a commodity can be sold at.

Tax

Compulsory financial charges or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or production.