Explain relationship in output gap and the unemployment rate


The relationship between the output gap and the unemployment rate can be summarized as:

A. when the output gap is negative, the unemployment rate is below the natural rate.
B. when the output gap is zero, the unemployment rate is also zero.
C. when there is an inflationary gap, the unemployment rate is above the natural rate.
D. when the output gap is positive, the unemployment rate is below the natural rate.

Request for Solution File

Ask an Expert for Answer!!
Microeconomics: Explain relationship in output gap and the unemployment rate
Reference No:- TGS065876

Expected delivery within 24 Hours