If the Actual Unemployment Rate Is One Percentage Point Less

question 21

Multiple Choice

If the actual unemployment rate is one percentage point less than the NAIRU,then

• A)actual and potential GDP are equal.
• B)actual GDP is greater than potential GDP.
• C)actual GDP is less than potential GDP.
• D)potential GDP will expand permanently.
• E)potential GDP will contract until it equals actual GDP.

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