Suppose that the unemployment rate has increased by 2%. What would be the change in the output gap? The output gap becomes more positive by about 4 percentage points O The output gap becomes more negative by about 1 percentage point The output gap becomes more positive by about 1 percentage point The output gap becomes more negative by about 4 percentage points

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model
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Suppose that the unemployment rate has increased by 2%. What would be the
change in the output gap?
The output gap becomes more positive by about 4 percentage points
O The output gap becomes more negative by about 1 percentage point
The output gap becomes more positive by about 1 percentage point
The output gap becomes more negative by about 4 percentage points
Transcribed Image Text:Suppose that the unemployment rate has increased by 2%. What would be the change in the output gap? The output gap becomes more positive by about 4 percentage points O The output gap becomes more negative by about 1 percentage point The output gap becomes more positive by about 1 percentage point The output gap becomes more negative by about 4 percentage points
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