Question: The graph below represents the unemployment rate and natural rate of unemployment for the hypothetical country of Finnistan for the past 10 years.
1. From 2005 to 2007 this country experienced a
- negative output gap with real GDP below potential GDP.
- negative output gap with real GDP above potential GDP.
- positive output gap with real GDP below potential GDP.
- positive output gap with real GDP above potential GDP.
2. From 2011 to 2013 this country experienced a
- negative output gap with real GDP below potential GDP.
- negative output gap with real GDP above potential GDP.
- positive output gap with real GDP below potential GDP.
- positive output gap with real GDP above potential GDP.
