If the rate of inflation is-2 percent, the output gap is -5 percent, the nominal interest rate is 5 percent, and the unemployment rate is 8 percent, the real interest rate is 3 percent.

Name: If the rate of inflation is-2 percent, the output gap is -5 percent, the nominal interest rate is 5 percent, and the unemployment rate is 8 percent, the real interest rate is 3 percent.
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Question

Quizplus · Accepted Answer

The information provided is insufficient to calculate the real interest rate.

If the Rate of Inflation Is-2 Percent, the Output Gap