If the Output Gap Equals - $50 Million,then

question 54

Multiple Choice

If the output gap equals - $50 million,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 less than actual GDP.
• E) the actual rate of unemployment is less than the natural rate of unemployment.

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Definitions:

Chapter 7

A section of U.S. bankruptcy law under which a debtor's assets are liquidated and proceeds distributed to creditors.

Unsecured Creditor

A creditor that extends credit without requiring specific collateral, bearing higher risk if the borrower defaults.

Claim

A demand for something due or believed to be due, typically a request for payment in accordance with an insurance policy or other formal agreement.

Involuntary Petition

A legal process initiated by creditors requesting a court to declare a debtor bankrupt when the debtor hasn't voluntarily filed for bankruptcy.