The structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the economy's current unemployment rate is 3.5 percent. The economy is: A.in an inflationary gap producing more than the potential real GDP. B.n a recessionary gap producing less than the potential real GDP. C.in a long run equilibrium. D.in an inflationary gap producing the potential real GDP.

The structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the economy's current unemployment rate is 3.5 percent. The economy is: A.in an inflationary gap producing more than the potential real GDP. B.n a recessionary gap producing less than the potential real GDP. C.in a long run equilibrium. D.in an inflationary gap producing the potential real GDP.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macroeconomics And The Self Regulating Economy

Section: Chapter Questions

Problem 14QP

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