When an economy is operating in a negative output gap (Recessionary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is greater than full employment c. Employment is equal to Natural rate of unemployment d. Unemployment is greather than the Natural rate of Unemployment.

When an economy is operating in a negative output gap (Recessionary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is greater than full employment c. Employment is equal to Natural rate of unemployment d. Unemployment is greather than the Natural rate of Unemployment.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter9: Classical Macro Economics And The Self Regulating Economy

Section: Chapter Questions

Problem 2WNG

See similar textbooks

Similar questions

Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true? a. The economy has a full employment. b. Cyclical unemployment is negative. c. Frictional unemployment becomes zero. d. The economy is in recession.
Following a demand-side recession, what happens to full employment GDP (C+I+G) after a few recessions and over-expansion? Why is this composition problematic for the long run?
During a recession, the Part 2 A. cyclical rate of unemployment is positive. B. cyclical rate of unemployment is negative. C. cyclical rate of unemployment is zero. D. natural rate of unemployment has fallen.
If the full employment level is at 500, does the economy suffer from gaps? If there is any gap Its type and amount with self-correcting and clarifying it by drawing. C = 50 + 0.8Yd I = 60 G = 100 T = 15 X = 35 M = 12 + 0.3Y can you solve it by typing, and the drawing by graph please?
Give typing answer with explanation and conclusion The structural unemployment rate is 1.5 percent, the frictional unemployment rate is 3.1 percent, and the economy's current unemployment rate is 6.9 percent. The economy is in?
A mild period of falling incomes and rising unemployment is called a: A mild period of falling incomes and rising unemployment is called a: A. business cycle B. boom C. recession D. depression
When an economy is operating in a positive output gap (Inflationary Gap) which of the following must be true? a. Unemployment is less than full employment b. Employment is less than full employment c. Employment is equal to full employment d. Unemployment is greater than the Natural rate of Unemployment
FILL IN THE BLANKS Unemployment occurs when a worker who is not currently employed is unable to find suitable paid employment. In every economy, however, there will always be people moving between jobs. This group is known as the unemployed. But, if finding another job takes so long so that the individual stops looking, then he/she is classified as a worker and is no longer counted in the unemployment statistics. An economy’s natural rate of unemployment is the sum of its frictional and employment. If the labor market become more efficient so that people looking for work find matching jobs quicker, then the natural rate of unemployment will . The increase in unemployment that occurs during recessions (or downturns) in the economy is known as the type of unemployment.
The natural rate of unemployment is a. when the economy is at potential GDP. b. when the unemployment rate is at full employment. c. when there is no cyclical unemployment. d. all of the above. e. only a and b.
The unemployment rate A. shows the percentage of the population that is considered unemployed. B- shows the percentage of the labor force that is considered unemployed. C. is the amount of people in the population that are not working D. is the amount of the labor force that is not working Suppose an economy is given by the following Population 258 million Labor force 161 million The number of people employed 154.6 million The number of people unemployed 6.4 million Given the information above. the unemployment rate is T% (Enter your response rounded to one decimal place)
increases in a positive GDP gap are associated with increase in the unemployment rate. True Or False Explaine in detail
6 19. Draw an unemployment gap graph showing AD, AS and POT GDP and the unemployment gap of Real GDP .