Ilf the output gap equals 0 thencyclical unemployment equals the sum of structural and frictional unemploymentthere is no cyclical unemploymentthere is an expansionary gapthe actual rate of unemployme
If the output gap equals 0%, it means that actual GDP is equal to potential GDP and there is no expansionary or contractionary gap. Therefore, there is no cyclical unemployment. The actual rate of unemployment may still be different from the natural rate of unemployment, but it is not necessarily greater. The sum of structural and frictional unemployment does not equal cyclical unemployment in this scenario.
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