L18 - Potential Output | Conjunto de Fichas

Pregunta	Respuesta
At potential output, what happens to unemployment?	Y = Y* --> u = u* --> cyclical unemployment = 0
At RealGDP, what happens to unemployment?	Y < Y* resulting in a recessionary gap --> u > u* --> cyclical unemployment is (+)
What happens to unemployment when the economy is producing more than potential?	Y > Y* resulting in an expansionary gap --> u < u* --> cyclical unemployment is (-)
What is u*?	The estimate of what u will be.
What are changes in realGDP inversely related to?	Changes in the unemployment rate.

L18 - Potential Output

	Creado por Sophia Lynch hace alrededor de 6 años