If the Output Gap Equals −3.2 Percent, Then

question 97

Multiple Choice

If the output gap equals −3.2 percent, then:

• A)cyclical unemployment equals the sum of structural and frictional unemployment.
• B)there is a recessionary gap.
• C)there is no cyclical unemployment.
• D)potential GDP is lower than actual GDP.

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Definitions:

Account

A record or statement of financial expenditure and receipts, related to a specific period or purpose, or a contractual arrangement through which an individual or entity receives financial or banking services.

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person.

Invoice

A document issued by a seller to a buyer, detailing products or services provided, quantities, and agreed prices.

Outstanding Balance

The amount of money owed that has not yet been repaid.