When the Unemployment Rate Is Less Than the Natural Unemployment

question 347

Multiple Choice

When the unemployment rate is less than the natural unemployment rate

• A) the output gap is positive.
• B) the output gap equals zero.
• C) the output gap is negative.
• D) None of the above is possible because it is impossible for the unemployment rate to be less than the natural rate.

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Definitions:

Sales Discount

A reduction in the price charged to customers, typically given in exchange for prompt payment.

Discount Period

The discount period refers to the time frame in which a payment can be made at a reduced rate, typically in the context of early payment incentives to debtors.

Primary Source

Original documents or evidence directly associated with a subject or event under investigation, used in research.

Revenue

The total amount of money generated by the sale of goods or services related to a company's primary operations.