QUESTION 7 The output gap and cyclical unemployment rate are negatively correlated over the business cycle (move up and down in the opposite direction over time). O True O False QUESTION 8 Which statement best describes the magnitudes of fluctuation in the output gap and cyclical unemployment for each business cycle (one recession and one expansion) since 1950? O The variables fluctuate about the same amount in each business cycle O The variables fluctuate by very different amounts in each business cycle O Neither variable fluctuates much in a business cycle O None of the above QUESTION 9 Since 1950, the output gap has varied a little less than cyclical unemployment (as measured by the differences between the approximate minimum and maximum values for each variable). O True O False