The squared deviation of unemployment from the natural rate is used as a measure of "output loss" because
A) both positive deviations and negative deviations are costly.
B) policy can influence only the degree of fluctuation of an economy around potential GDP and thus of unemployment around the natural rate; squared deviations are a measure of that fluctuation.
C) it is a convenient measure that is routinely reported as output from statistical investigations.
D) all of the above.
E) none of the above.

Question

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The Answer of The squared deviation of unemployment from the natural rate is used as a measure of "output loss" because
A) both positive deviations and negative deviations are costly.
B) policy can influence only the degree of fluctuation of an economy around potential GDP and thus of unemployment around the natural rate; squared deviations are a measure of that fluctuation.
C) it is a convenient measure that is routinely reported as output from statistical investigations.
D) all of the above.
E) none of the above.

The Squared Deviation of Unemployment from the Natural Rate Is