In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:
A. 1 percent.
B. 2 percent.
C. ?1 percent.
D. ?2 percent.
Answer: D
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Answer the following statement true (T) or false (F)
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Indicate whether the statement is true or false
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a. True b. False Indicate whether the statement is true or false
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