10.When the output gap is negative, the actual unemployment rate is:A)above the natural rate.B)below the natural rate.C)equal to the natural rate.D)The actual and natural unemployment rates arenot related to the output gap.
11.When the output gap is _________, reflecting an inflationary gap, the unemployment rate is _________ the natural rate of unemployment.
12.The natural rate of unemployment is 4%, and the economy is producing 95% of its potential output. Okun's law predicts an unemployment rate of:
13.According to the short-run Phillips curve, when actual real GDP is _________ potential output, the price level _________ and the unemployment rate falls.