If the Natural Rate of Unemployment Is 5

question 48

Multiple Choice

If the natural rate of unemployment is 5.2 percent and the unemployment rate is 5.5 percent, then the unemployment gap is

• A)−5.8 percent.
• B)−0.3 percent.
• C)+0.3 percent.
• D)+5.8 percent.

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Definitions:

Forward Market

A type of financial market where contracts for future delivery of goods, services, or financial instruments are traded.

Discount

A reduction from the usual cost of something, often used to encourage sales or provided as an incentive for early payment.

Direct Quote

A monetary exchange rate where the domestic currency is quoted per each unit of a currency from another country.

Canadian Dollar

The currency of Canada, symbolized as CAD and often represented by the dollar sign $ or C$ to differentiate it from other dollar-denominated currencies.