Chapter9: Classical Macro Economics And The Self Regulating Economy
Section: Chapter Questions
Problem 2WNG
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Question
![Aggregate
price level
LRAS
SRAS,
P,
AD
Yp
Y,
Real GDP
When the output gap is negative (a recessionary gap), the unemployment rate is below the natural rate.
When the output gap is negative (a recessionary gap), the unemployment rate is above the natural rate.
When the output gap is positive (a inflationary gap), the unemployment rate is above the natural rate.
When the output gap is positive (an inflationary gap), the unemployment rate is below the natural rate.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad61fb23-6772-4c68-a944-71325d2213c5%2F7b4d4163-862b-43d8-8f77-70f26385615b%2Fqyhxrdg_processed.png&w=3840&q=75)
Transcribed Image Text:Aggregate
price level
LRAS
SRAS,
P,
AD
Yp
Y,
Real GDP
When the output gap is negative (a recessionary gap), the unemployment rate is below the natural rate.
When the output gap is negative (a recessionary gap), the unemployment rate is above the natural rate.
When the output gap is positive (a inflationary gap), the unemployment rate is above the natural rate.
When the output gap is positive (an inflationary gap), the unemployment rate is below the natural rate.
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