Natural rate of unemployment

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If the natural rate of unemployment is 4 percent and the actual rate of unemployment is 5 percent, Okun's law states that the output gap is ________ and the economy is in a(n) ________.

A. –1 percent; recession

B. 2 percent; economic boom

C. –2 percent; recession

D. –0.5 percent; recession

Reference no: EM13976352

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