The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the current unemployment rate (in the economy) is 5.6. The economy is in

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Business

Katrina Taylor

26 March, 16:04

The frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the current unemployment rate (in the economy) is 5.6. The economy is in

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Aaron Bolton · Answer 1

If the frictional unemployment rate is 2.5 percent, the structural unemployment rate is 3.1 percent, and the current unemployment rate (in the economy) is 5.6, then the economy is in a recessionary gap producing natural real gdp.

A recessionary gap, or contractionary gap, is a macroeconomic term which refers to the difference between actual and potential production in an economy.