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What does a contractionary gap imply about the actual rate of unemployment relative to the natural rate of unemployment?

Answer:
Assume certeris paribus, an expansionary gap is where real GDP is above the full employment, and a contractionary gap is where real GDP is below the full employment.
First answer by ID1071681762. Last edit by AndrewG1414. Contributor trust: 0 [recommend contributor recommended]. Question popularity: 5 [recommend question].

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