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:

Developing country

A nation with a less developed industrial base and a lower Human Development Index relative to other countries.

Material well-being

The state of having sufficient material resources and wealth to lead a comfortable life, encompassing factors like income, assets, and access to goods.

Global warming

The gradual increase in Earth's average surface temperature, primarily due to the emissions of greenhouse gases from human activities.