When There Is a Negative Output Gap,the Unemployment Rate

question 26

Multiple Choice

When there is a negative output gap,the unemployment rate

• A) rises.
• B) remains steady.
• C) is also negative.
• D) is less reliable.

---

Definitions:

Consumer Surplus

See Buyer Surplus.

Maximum Price

The highest price that can be charged for a good or service, often set by regulatory authorities to protect consumers.

Producer Values

The set of ethical principles and standards that guide the behavior and practices of producers or manufacturers.

Buyer Surplus

Buyer surplus is the difference between the maximum amount a consumer is willing to pay for a good or service and the actual amount paid.