Use the following to answer questions:
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure: Actual and Natural Rates of Unemployment. In 2011 the output gap was:
A) positive.
B) negative.
C) zero.
D) impossible to determine without more information.

Question

Use the following to answer questions: 
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure: Actual and Natural Rates of Unemployment. In 2011 the output gap was:
A) positive. 
B) negative. 
C) zero. 
D) impossible to determine without more information.

Quizplus · Accepted Answer

The actual rate of unemployment in 2011 was above the natural rate, indicating a negative output gap.

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