The production possibilities curve (PPC) for the nation of Hamiltonia is shown here. Hamiltonia’s current output is indicated by point X. Based on this PPC, what are the output gap and the relationship between the current rate of unemployment and the natural rate of unemployment? Choose 1 answer: Choose 1 answer: (Choice A) There is a negative output gap; current unemployment is lower than the natural rate of unemployment. A There is a negative output gap; current unemployment is lower than the natural rate of unemployment. (Choice B) There is a positive output gap; current unemployment is less than the natural rate of unemployment. B There is a positive output gap; current unemployment is less than the natural rate of unemployment. (Choice C) There is a negative output gap; current unemployment is equal to the natural rate of unemployment. C There is a negative output gap; current unemployment is equal to the natural rate of unemployment. (Choice D) There is a positive output gap; current unemployment is greater than the natural rate of unemployment. D There is a positive output gap; current unemployment is greater than the natural rate of unemployment. (Choice E) There is a negative output gap; current unemployment is greater than the natural rate of unemployment. E There is a negative output gap; current unemployment is greater than the natural rate of unemployment.
