When the unemployment rate of a country (economy) exceeds the natural unemployment rate, real GDP is above potential GDP and the output gap is negative.
What is unemployment rate?
Unemployment rate can be defined as a measure or percentage of the total labor force in a country (economy), who are unemployed but are actively seeking to be gainfully employed by the employers of labor.
According to economists, when the unemployment rate of a country (economy) exceeds the natural unemployment rate or the natural unemployment rate of a country (economy) is below the unemployment rate, real Gross Domestic Products (GDP) is above potential GDP and the output gap is negative.
Read more on GDP here: https://brainly.com/question/1383956
