When the Output Gap Is _____, the Unemployment Rate Is

question 184

Multiple Choice

When the output gap is _____, the unemployment rate is _____ the natural rate.

• A) negative; below
• B) zero; zero
• C) inflationary; above
• D) positive; below

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Definitions:

Total Output

The aggregate quantity of goods or services produced by an economy, sector, or production process over a specific period.

Barbershop

A place of business where people, typically men, go to get haircuts and often beard trims or shaves.

Average Total Cost

The total cost of production divided by the quantity produced, including both fixed and variable costs, representing the per unit cost of production.

Output

Output is the total amount of goods or services produced by a company, industry, or economy within a certain period.