When the Current State of the Economy Is Such That

question 6

Multiple Choice

When the current state of the economy is such that Real GDP is less than Natural Real GDP,the economy is in a(n) ____________________ gap.In this situation,the (actual) unemployment rate is ___________ than the natural unemployment rate,and there is a ________________ in the labor market.

• A) recessionary; greater; shortage
• B) inflationary; less; shortage
• C) inflationary; greater; surplus
• D) recessionary; greater; surplus
• E) recessionary; less; shortage

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Definitions:

Performance

The action or process of carrying out or fulfilling a task, agreement, or expectation.

Partial

Incomplete or not whole; often refers to payments, information, or actions that are not fully completed.

Express

Express refers to a mode of communication or transportation that is fast and direct.

Condition

A specific requirement or stipulation that must be met for a contract or agreement to become effective or for certain actions to be taken.